The Dun & Bradstreet Composite Business Optimism Index for the OctoberDecember quarter of this year stood at 79.5, registering an increase of 3.6 per cent as compared to an yearago period.
Business optimism for the October-December quarter improved marginally, according to media reports. The mood of corporate India seems to have improved on the back of expectations of higher festive season demand, implementation of the 7th Pay Commission awards and increase in minimum support price (MSP) of Kharif crops.
The Dun & Bradstreet Composite Business Optimism Index for the October-December quarter of this year stood at 79.5, registering an increase of 3.6 per cent as compared to an year-ago period.
Media reports quoted Manish Sinha, managing director – India, Dun & Bradstreet as saying, “Aspects that appear to improve optimism levels are expectations of higher demand given the festive season, implementation of the 7th Pay Commission awards, reduction in the GST rates on selected commodities and increase in MSP of Khariff crops.”
According to the report, optimism for net profits stood at 65 per cent, an increase of 9 percentage points as compared to the same period a year ago, while optimism for new orders stood at 70 per cent (up 5 percentage points) and optimism for volume of sales at 75 per cent (up 4 percentage points).
The high non-performing assets (NPAs) in the banks, the tightening of liquidity, depreciation in rupee, firming of crude oil prices and geopolitical issues and trade wars seem to have affected business sentiment.
Going forward, the unfolding of further information or regulations on the NBFCs following the recent default by a systemically important NBFC is likely to make businesses cautious, especially MSMEs, and may affect the index.