SINGAPORE -- (BUSINESS WIRE) --

Afflicted by weakened business outlooks in China and other emerging markets, the YPO Global Pulse Confidence Index for Asia experienced its largest single-quarter decline in the history of the four-year series, according to the latest YPO poll of CEOs. The July index came in at 59.0, 5.2 points below its April level and down 1.1 points year on year.

CEO confidence in the ASEAN economies plunged more than 5 points, and the Asian Tiger Cubs collectively slumped more than 3 points, but both groups landed in the mid-60s, above the Asian composite level. China and India, however, tumbled to the mid-50s, below the regional index. The only countries immune to the downturn were developed countries; the collective confidence of the Asian Tiger economies was largely unchanged, and Japan rose almost a point to 58.0, its all-time high.

Key findings

Slashed expectations for growth, hiring and fixed investment: Forecasts for both turnover and capital spending fell to their lowest levels in the history of the survey. The YPO Sales Confidence Index for Asia now stands at 62.7, a 9.3-point fall from the April 2013 report and 2.9 points below the global composite. Employment confidence declined to 56.5, indicating prudence in taking on new workers. Fixed investment confidence dropped to 61.3, but still 1.3 points above the global reading.

Second half of 2013 expected to be better: Nearly four in 10 (37%) Asian CEOs surveyed said business and economic conditions had deteriorated over the past six months. However, their outlooks for the second half of the year were more upbeat: only 15% said they thought conditions would continue to get worse while the majority (52%) expected conditions to would improve by year end.

Commentary

“The marked drop in confidence amongst Asia’s emerging market CEOs was primarily due to two factors: uncertainty about the pace of quantitative easing in the United States and decelerating growth prospects in China,” said Terry O’Connor, regional chief executive officer of Courts Asia and board member of YPO’s Southeast Asia region. “However, it’s important to remember that even at its four-year low, CEO confidence in Asia remains in optimistic territory; business leaders are still bullish on the region’s growth trajectory.”

Visit www.ypo.org/globalpulse for more information about the survey methodology and results from around the world. For more information about YPO, visit www.ypo.org.

CONTACT:

YPO
Michèle Foster, +1-512-772-4701
mfoster@ypo.org