The confidence of chief executive officers (CEOs) in Asia is on the decline, according to the latest Young Presidents' Organisation (YPO) Global Pulse Survey.
The quarterly poll, conducted most recently in July, saw the YPO Global Pulse Index for Asia decline 1.8 points to 60.1, the lowest since the survey's inception three years ago.
During the first several quarters of the survey, Asian confidence averaged nine points higher than the global confidence index reading. The current reading is closely in line with the global reading, which stands at 59.7.
Within Asia, confidence levels of CEOs ranged from high readings near 70 in Thailand and the Philippines to lows near 50 in Japan and South Korea. In China, CEO confidence fell by almost seven points to land in the upper 50s.
Since last summer, the YPO Global Pulse Index for Asia has been pointing to slower growth,” said Terry O’Connor, regional chief executive officer of Courts Asia and chair of the YPO Singapore Chapter.
“Evidence of that trend accumulated during the past several months, as China reported that second quarter GDP growth fell to 7.6%, the Singapore economy actually declined last quarter, and South Korea and Japan both cut their full-year forecasts," Connor said.
"Nevertheless, it is important to note that the forecast is for a slower pace of growth, not a contraction by any means,” he added.
When asked to gaze six months into the future, 42% of CEOs surveyed thought economic conditions would improve – down from 51% in the previous quarter. Those who thought conditions would worsen by year-end increased slightly from 14% to 16%.
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