Asian firms’ business sentiment dips to 11-year low on coronavirus impact – Thomson Reuters/INSEAD survey

The latest Thomson Reuters/INSEAD survey revealed that the business morale among the Asian firms dipped to the lowest level in eleven years in the second quarter of 2020, as coronavirus pandemic continues to remain the biggest risk.

Key findings

“The confidence during the June quarter fell by a third to 35, only the second time the Thomson Reuters/INSEAD Asian Business Sentiment Index has slumped below 50 since the survey began in the second quarter of 2009.”

“About 16% of the 93 companies surveyed also said a deepening recession was a key risk for the next six months, with more than half expecting staffing levels and business volumes to decline.”

Antonio Fatas, Singapore-based economics professor at global business school INSEAD, said: “We ran this survey right at the edge when things were getting really bad. We can see this complete pessimism which is spread across sectors and countries in a way that we haven’t seen before.”