Institutional investors’ outlook for global growth improved in the third quarter, with more than two-thirds, 68%, saying a double-dip recession is unlikely, a survey of 83 managers by Northern Trust Global Advisors found.

They also expect the balance of power to shift in Congress through the November elections, and the market to respond favorably. That coupled with a slight improvement in unemployment in the next six months, cited by 67%, should help the markets.

In addition, 68% are optimistic that corporate earnings will increase in the next three months, up from 57% who said so in September. Asked what the five most attractive market segments are, managers cited technology, emerging markets, healthcare, industrials and energy.

They also appear to be willing to take on risk, with only 8% saying they are more risk-average than three months ago, when 31% said they were more risk-averse.

“Our third-quarter survey revealed some subtle but encouraging shifts in manager sentiment,” said Chris Vella, global director of research for Northern Trust. “The most notable trend is toward a sense of stabilization within equity markets, as well as an uptick in global growth expectations. As evidence of improvement in the macro environment, most managers also appear confident that a double-dip recession is unlikely.”

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