Expectations for industry growth showed little change compared to last fall (see IBO 10/15/14), according to IBO’s biannual Business Climate Survey. However, compared to a year ago, sentiments were more restrained. This spring, 57% of survey participants expect instrument and laboratory product–industry sales to increase moderately. Forty-three percent expect them to stay the same. However, last spring (see IBO 5/15/15), 73% expected them to increase moderately, and only 19% expected them to stay the same.

In early May, 22 industry executives completed the online spring IBO Business Climate Survey Respondents included IBO subscribers and other solicited participants. Sample participants vary with each survey.

The relatively stable outlook contrasts with recently updated 2015 GDP forecasts from the International Monetary Fund (IMF) and the Organization for Economic Co-operation and Development (OECD) (see table, page 3), which were re-leased in April and March, respectively. The most dramatic changes were a downward revision for the US by the IMF and a change for Brazil’s output from positive to negative. Both organizations also increased their forecasts for India’s growth. For 2015 global GDP growth, the IMF maintained its forecast of 3.5%. For the OECD area, GDP estimates were increased one-tenth of a percentage point to 4.0%.

Due to this year’s multiple economic and market challenges, survey respondents were asked to gauge the relative seriousness of several factors for the industry as a whole. Survey participants were asked to rate four threats to industry sales growth this year in terms of demand. Ratings were given on a scale of 1 to 5, with 1 indicating no threat and 5 indicating a severe threat. “Weak industrial funding” received the highest average rating at 3.2. All three other threats—weak government funding, slow economic growth in China and slow economic growth in emerging markets—received an average rating of 3.1. With no one factor having an average rating of either 4 or 5, the results suggest that executives view these challenges as manageable for the industry.

Asked to rate on the same scale four potential threats to “doing business” this year, the average rating was higher for two threats: currency volatility and pricing pressure. Each received an average rating of 3.5. The two other threats—increased competition and rising costs—each received average ratings of 3.0.

Respondents were asked to rate geographic sales prospects by region for the next six months on a scale of 1 to 5, with 1 indicating worsening growth, 3 indicating stable growth and 5 indicating improving growth. For the third consecutive survey, North America was once again the highest-rated region on average of the nine regions listed. However, as with six other regions, the average rating for North America declined compared to last fall’s survey (see IBO 10/15/14). Latin America experienced the largest decline from last fall, falling five-tenths of a percentage point. The only region to show an increased average rating was China, up one-tenth of a percentage point. India and Japan maintained their rankings from last fall as the regions with the second- and third-highest average ratings. The average rating for all regions was 3.1, com-pared to 3.2 last fall.

Asked to rate industry sales prospects for the next six months using the same rating system, as in the fall 2014 survey, respondents rated biotechnology the highest, with an average rating of 3.7. Government once again received the lowest average rating at 2.8. Government has been the lowest-rated end-market in the surveys since spring 2011 (see IBO 5/15/11).

Compared to the fall survey, 6 of the 12 end-markets showed an increase in average ratings, but only two showed a change in average ranking of two-tenths of percentage point or higher. Agriculture fell four-tenths of a percentage point from last fall, and chemicals fell three-tenths of a percentage point. The average rating for all 12 end-markets was 3.1 compared to 3.2 last fall.