Business Leaders Reported Worsening Global Economy
Half of surveyed leaders say conditions have deteriorated as energy price concerns mount for households.
Updated on Oct. 6, 2026 in Economic Indicators
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Half of global business leaders reported in a recent survey that economic conditions have worsened over the past six months, while 40 percent noted similar declines in their home countries. The survey captured perspectives from hundreds of executives during the third quarter of 2026.
Why it matters
Rising energy prices—linked to ongoing conflicts involving Iran, the U.S., and Houthi forces in the region—are now a top risk factor for businesses and families alike. This instability in energy markets continues to influence both current operating budgets and longer-term corporate investment strategies.
While 50 percent of global respondents saw economic conditions decline, 34 percent of all global leaders identified energy costs as their primary business risk. This sentiment is particularly high in India, where 49 percent of respondents cited energy prices as their leading concern.
The players
McKinsey
A global management consulting firm that conducts quarterly surveys of business leaders to monitor international economic conditions.
The details
Executives noted that geopolitical instability and trade policy shifts remain significant drivers of economic volatility. In response, many businesses are aggressively prioritizing artificial intelligence, with 53 percent of Indian respondents and 47 percent of North American and European respondents flagging AI as a top investment priority. Despite these tech-focused growth plans, 22 percent of total respondents still view the rapid shift to new technologies as a significant financial risk.
Timeline
June 2026 was the period of the previous quarterly survey.
September 2026 marked the most recent quarterly survey period.
Money Landscape
This survey highlights a broader period of uncertainty in the global economy, as business leaders grapple with the intersection of high energy costs and rapid technological adoption. The data reflects a cautious outlook compared to historical periods of sustained expansion.
As business leaders signal that energy remains a primary risk factor, households should prepare for continued price volatility in fuel and utilities. Consult with a financial professional to discuss how your budget can accommodate potential fluctuations in energy-related expenses.
The takeaway
The primary insight is that energy price volatility is currently outpacing other global risks for many business decision-makers. Households should review their monthly utility budget lines to ensure they have an adequate buffer for potential price spikes in the coming year.
Further reading
For more information on how current global trends impact household finances, visit our Economic Indicators section.
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