Top companies in Asia are less optimistic about their business outlook than in the first quarter, on the back of growing pressure from the Eurozone crisis and slow growth in China, according to a Thomson Reuters/INSEAD Asia Business Sentiment Survey.
Of the 177 companies in the Asia Pacific region, 44.07 percent saw a positive outlook in the next six months compared to 51.35 percent in Q1. Negative responses climbed from 4.05 to 6.78 percent while a neutral outlook rose from 44.59 to 49.14 percent in Q1.
Most of the companies attributed the negative outlook to the global economic uncertainty. 28 firms blamed rising costs while nine pointed to FX volatility. Other risks cited were government policy shifts, oil prices, regulatory changes, and government instability.
The Thomson Reuters/INSEAD Asia Business Sentiment Index fell to 69 percent in Q2 2012 from 74 percent in the previous quarter. An index of more than 50 indicates a positive outlook.
Property was the most negative sector with a reading of 55, followed by shipping at 56. On the other hand, the pharmaceutical sector had the most positive index reading of 83 followed by the airline sector at 80.
The country with the most positive outlook was the Philippines with an index reading of 100 while Australia was last at 42.
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