The latest Business Sentiment Survey by ThomsonReuters/INSEAD Asia shows that top Asian companies showed a bullish outlook in the 2014 second quarter, in comparison with the first quarter. This outlook has emerged in spite of global economic concerns and a spike in costs.
124 companies participated in the survey that included a poll. None of these companies stated a negative outlook. This is the first time that an all-positive outlook has emerged in the history of the survey. Furthermore, the ThomsonReuters/INSEAD Asia Business Sentiment Index saw a significant rise from being 64 in the first quarter to 74 in the second quarter. A reading higher than the 50-point mark indicates a positive outlook overall.
Elsewhere in the world, companies are expressing concerns over rising costs, a sluggish global economy, and volatile exchange rates. Indian companies, on the other hand, reflected the highest optimism with all 10 respondents stating that they maintained a positive outlook. Such a level of optimism was last observed by the survey during the last quarter of 2012. Nine of the 10 companies said that they had recorded higher sales and increased new orders during the second quarter. At the same time, 60% of respondents said that employment levels in their company had risen. Moreover, three companies also noted that delayed payments from their customers had seen a decline during this period. Consumer confidence in India (the third-largest economy in Asia) has revived after pro-business politician Narendra Modi witnessed a resounding electoral victory. Similarly, companies in Australia also reported higher business confidence in the second quarter of 2014.