Global business confidence down to five-year low

Global business confidence dropped to a five-year low in October, marking a sharp fall in optimism, the Markit Global Business Outlook Survey showed on Monday.

Hiring and investment plans were also at or near post-financial crisis lows, while price expectations deteriorated further, said Markit on Monday.

"Clouds are gathering over the global economic outlook, presenting the darkest picture seen since the global financial crisis," said Chris Williamson, chief economist at Markit.

"Companies' hiring and investment intentions have both fallen to post-crisis lows alongside the bleakest outlook for future business activity seen over the past five years," said Williamson.

The report said the decline in optimism among companies was due to a growing list of factors.

Key threats include fears of a worsening global economic climate, a renewed downturn in the euro zone, the prospect of higher interest rates in countries such as Britain and the United States next year and geopolitical risk emanating from crises in Ukraine and the Middle East, said Markit.

"Across the four BRIC emerging markets, business optimism has sunk to the lowest seen since the financial crisis," added Williamson.

The Global Business Outlook Survey is based on a survey of around 11,000 manufacturers and service providers that are asked to give their thoughts on future business conditions.