Deloitte Interview Suggests That Sustained Global Recovery Is Underway

Online, November 16, 2010 (Newswire.com) - In a recent interview with CNBC, Deloitte CEO Jim Quigley expressed his firm's optimism in sustained economic recovery. With debt concerns out of Europe, problems in Ireland and Greece, as well as concerns over a double dip recession, Quigley and Deloitte remain confident and positive. The professional services firm has begun investing and hiring to reflect this position and predicts that sustained recovery has begun.

According to Quigley, "the leading indicators show that sustained recovery is underway... ...We do have a strong outlook as we look forward in the next five years. We believe that a sustained recovery has in fact begun. We see it showing up in our business with the strength of our backlog. Everyone's question about the economy is all about jobs. I am pleased that we have returned out hiring levels to the levels we had pre financial crises."

The interview covered his optimistic view about the US job market as well as Deloitte's role in addressing the challenges of recovery.

Perhaps the most important point was about the decreasing possibility of a double dip recession. "The economists at Deloitte Research have indicated to me that the leading indicators show that a sustained recovery is underway. The number of people that actually are talking about the double dip has become very much a minority of the economists. There are still some out there who hold that view but the economists at Deloitte Research do not hold that view."

Other topics included the currency war, regulatory changes with an emphasis on Basil III, and government intervention and its effect on innovation.

In response to the interview, Analyst Alex Schmidt of Devonshire & Douglas Capital Partners thought that Quigley had valid points. "Basil III and regulation is an important part of ensuring that we don't repeat the mistakes of the past, however as Quigley pointed out it is important that that regulation doesn't become intervention that stifles innovation and progress."

"The simple fact that firms like Deloitte are hiring again and are generally positive in their outlook is a great sign for economic recovery, and one that I also view as an early indicator that recovery is more sustainable than I had though 3 months ago."