Business sentiment among Asian companies sank to an 11-year low in the second quarter amid the coronavirus pandemic, according to a Thomson Reuters/INSEAD survey.
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 during the global financial crisis.
A reading above 50 indicates a positive outlook. The last time the index showed a reading below that was in its debut quarter, when it hit 45. About 16% of the 93 Asian 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.
Survey participants included Thai hospitality group Minor International, Japanese automaker Suzuki Motor Corp., Taiwanese contract manufacturer Wistron Corp. and Australia-listed Oil Search.
Many countries are now easing coronavirus-related lock downs, but worries have risen that another wave of infections could hurt economies that have been battered from weeks of curbs on travel and movement.
Cases of coronavirus globally have now crossed eight million. After weeks with almost no new coronavirus infections, China recorded dozens of new cases in recent days. South Korea too faces an uptick of cases after early successful containment measures.
