Notwithstanding signs that the global economy is stabilizing, most corporate sectors will still face significant hurdles amid the recovery, Moody’s Investors Service cautions in a new report.

The rating agency’s report, the first in a series of new reports that look at the topic of recovery from a global perspective, finds that the global economic outlook and credit conditions are still somewhat weak.

“Overall, conditions remain weak globally for the consumer, primarily for the same reasons as in the U.S.,” said Moody’s senior managing director, Mike Rowan. “Rising unemployment, reduced access to credit, and negative trends in wealth due to falling asset prices all weigh heavily on most developed economies.”

This will likely weigh on the recovery of many sectors. In the retail sector, for example, Moody’s said that the credit picture remains challenged, with limited evidence of recovery as consumers’ ability and propensity to spend remain weak. The consumer durable sector remains vulnerable to further economic setbacks, rising unemployment, and the potential for higher energy prices and interest rates, it noted.

In addition, while the housing downturn appears to be showing signs of stabilization, the industry remains challenged, especially for the North American homebuilders, said Moody’s. Elsewhere, in Brazil and China, growth seems to be back on track though the economic downturn and credit availability may still pose an impediment to a more robust and sustained recovery, it said.

For the media industry, spending on state and local political races, the 2010 World Cup, and a potential peak in the U.S. unemployment rate by mid-2010 offer hope that advertising trends will improve as the next year progresses, said Moody’s. It also noted that ad markets in Asia and Latin America are holding up better than those in Europe and the U.S., and in some cases, even growing.

IE