The number of fund managers predicting that the global economy will worsen over the next 12 months has fallen to the lowest level since the onset of the credit crisis, according to a survey by Merrill Lynch.

The monthly survey, which polls 177 institutional investors controlling a total of $599bn in assets, showed those forecasting a deteriorating economy over the next year falling from 60 per cent last October to 6 per cent in February, the lowest level since July 2007.