Thursday, October 8, 2009

Economy Recovering?

CFOs Express More Confidence in Economy in the US economy which will augur well for those who operates from Asia as well.

The economy slow down has affected the ERP Business in Asia with factories retrenching workers particularly the semi conductors and consumer electronics industries that are largely dependence on the US market.

Tourism and its related industries were hit too with the Swine Flu (H1N1) that swept through the world including South East Asia. So actually we are hit with a double whammy, which is much worse than the previous 1997 recession.

But recently, particularly in South East Asia where we operate from, we see the economy and consumer spending are showing signs of picking up. Also factories that previously halted spending or which has KIVed their buying decision are resuming their evaluation of ERP systems again. Factories CFOs tells me that they received some large order that will keep them in production for the next two years. This is a good sign of recovery.

Our government reiterated its view that exports are picking up, with shipments to Asia particularly China rising and those to the United States and Europe showing signs of improving. It maintained its assessment that industrial output is also picking up, as manufacturers claw back production cuts from last year.

Off course we are not out of the darken tunnel yet but we are beginning to see the light.

Needless to say we have got some large orders which were KIVed since the beginning of the year, to help us closed off with a good showing in September in line with Sage Asia year end.

And I heaved a sigh of relief after that!

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