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Corporate India's business optimism for Jul-Sep rises 12% since last year

Corporate India's business optimism index for the July-September quarter registered an 11.7 per cent increase over last year, while on a quarter-on-quarter basis it has declined, says a report.


PTI 30 Jul 2018, 08:35 AM India

Corporate India's business optimism index for the July-September quarter registered an 11.7 percent increase over last year, while on a quarter-on-quarter basis it has declined, says a report.

The Dun & Bradstreet Composite Business Optimism Index stood at 80.6 during the third quarter of 2018, an increase of 11.7 percent as compared to the corresponding period last year.

Business optimism was low in the July-September quarter of 2017, as a result of implementation issues on goods and services tax (GST) and effects of demonetization.

"So, compared with that (July-September 2017), current sentiment is better," Dun & Bradstreet Managing DirectorIndia Manish Sinha said, adding that on a quarter-on-quarter basis, the index has declined due to the domestic and global headwinds.

According to Sinha, domestically, the factors that have weakened the optimism level amongst India Inc include rising NPA levels, the increase in inflationary pressures, rise in imported inflation on account of elevated crude oil prices, weak rupee and hike in policy rate in June 2018.

"On the external front, risks from geopolitical issues that threaten to keep oil prices elevated, a disorderly tightening of global financial conditions and escalating international trade tensions have not only weighed on the current optimism level but would continue to impact it in the near to medium term," Sinha added.

The index measures the pulse of the business community and is arrived at on the basis of a quarterly survey of business expectations.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


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