Business optimism for the January-March 2019 quarter witnessed a decline of over 7 per cent on a quarterly basis, due to uncertainties regarding the outcome of general elections and continuation of reform agenda, according to a report.
The Dun & Bradstreet Composite Business Optimism Index stood at 73.8 during January-March 2019, a fall of 7.2 per cent as compared to October-December 2018.
Moreover, five of the six parameters -- optimism for net profit, new orders, volume of sales, inventory and selling price -- also registered a decrease compared to fourth quarter of 2018, the report noted. The sixth parameter, workforce employed, saw a rise of 7 percentage points.
"The ruling party in the Centre lost three states in the state elections, possibly leading to questions amongst businesses, whether we would have a new government in Centre, whether we would have a continued reform agenda.
Going ahead, the announcements in the Union Budget 2019-20 and trepidations over the outcome of the general elections are likely to weigh upon the sentiment of India Inc," said Manish Sinha, Managing Director India, Dun & Bradstreet.
Further, there are apprehensions over the potential economic slowdown in the US and the weakening global economic growth, adding to domestic growth concerns, Sinha added.
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