CEOs' confidence level down in Asia in April-June: Survey

NEW DELHI: The confidence level of CEOs in Asia fell during the second quarter of 2012, but Indian business heads fare better than their Chinese counterparts in terms of their economic sentiments, a survey has said.

The survey of about 1,600 CEOs across the world conducted by Young President Organisation (YPO), showed an overall decline in the confidence levels among Asian CEOs.

YPO, a not-for-profit global network of young chief executives, said its Global Pulse Confidence Index tracks the confidence level of CEOs on factors like overall business conditions, investments and hiring.

It said the YPO Global Pulse Confidence Index for Asia has been pointing to slower growth since last summer, although the confidence levels among various countries in Asia varied widely.

The index measures the confidence level of CEOs in various countries on a scale centered on 50. An index reading below 50 indicates a negative outlook, while a score above 50 indicates positive outlook.

India was among the group of countries clustered in the centre at 60 points, while in China the CEO confidence level plummeted almost seven points to land in the upper 50s.

The overall score for Asia fell to 60.1 in April-June period of 2012, down 1.8 points from the previous quarter.

The confidence level in Asia could have been adversely impacted by China reporting a fall in its GDP growth to 7.6 per cent in the second quarter, Singapore economy shrinking and South Korea and Japan both lowering their full-year forecasts.

Asia's score is however better than the overall global confidence index of 59.7 points.

Among other countries in Asia, confidence in Thailand and Philippines was higher at 70 points, while Japan and South Korea were in lower trajectory at around 50 points.

The online survey was conducted among more than 1600 CEOs across the globe included 193 CEO from Asia.

As per the survey, nearly 34 per cent of CEOs in Asia believed that the economic condition has improved compared to six months ago.

Another 35 per cent said conditions had worsened, while 31 per cent said it had remained about the same.

In terms of future outlook, 42 per cent of the CEOs believed the economic situation would improve in the next six months. However, this was down from 51 per cent in the previous quarter.

On the other hand, 19 per cent of the CEOs said the condition would worsen by year-end, up from 14 per cent in the previous quarter.