Executives around the world are seeing their domestic economies improving; however, they also say local political conflicts are considered threats to growth, according to a recent survey by McKinsey & Co.

Overall, 38 percent of respondents find politics as a threat to growth. The survey finds this is particularly the case among U.S. respondents as negotiations failed to prevent the automatic government-spending cuts that went through the week before respondents participated in the survey. Other growth risks are low consumer demand at 42 percent, insufficient government-policy support at 37 percent, lack of access to credit at 27 percent and inflation at 20 percent.

As of March, 38 percent of respondents say economic conditions are better than they were six months ago, up from 30 percent in December 2012. Among U.S. respondents, 47 percent say economic conditions have improved over the last six months, marking a slight uptick from 46 percent in December 2012. Eurozone respondents are the least optimistic as only 24 percent of respondents report that the economy is better than it was six months ago, though this is still a jump from 15 percent in December 2012.