Business confidence on a steady decline
Updated: Jun 10, 2013 12:59:57pm
New Delhi, Jun 10 (KNN) The overall business confidence has declined for the second consecutive quarter with predictions less than optimistic for the next two quarters, according to a Federation of Indian Chambers of Commerce and Industry (FICCI) survey.
“FICCI’s Business Confidence Survey for Q4 FY13 indicated a decline in the Overall Business Confidence Index for the second consecutive quarter. The index dropped to 57.4 in Q4 FY13 survey from 61.2 in Q3 FY13,” said an official release.
There may be cause for alarm as participants from about 200 companies with a turnover ranging from Rs 10 lakh to one lakh crore did not expect any improvement over the next two quarters.
Although there have been some promising signs of recovery on the domestic front which need to be further strengthened, the global economic outlook looks bleak.
On the positive side, there has been an improvement in investment, employment and export prospects. Moreover, there has been considerable work initiated by the Cabinet Committee which has evoked a feel-good sentiment.
“However, going ahead it will be important to act on the policy front as well to ensure actualization of these investments,” said the survey.
Significantly, participants of the survey indicated that weak demand had been a worrying factor which has hampered the overall business performance, while some felt that increasing cost of credit remained a concern.
Further, the units did not seem optimistic about sales prospects and profit margin performance over the next six months.
The participating companies of the survey conducted for Q4 of FY 13 belonged to a varied array of sectors such as textiles, cement, financial services, chemicals, metal and metal products, automobiles, FMCG, electrical equipment and machinery, paper and paper products.
The survey was conducted during March 2013 and April 2013 and brought out expectations of the corporate members for the period April 2013 to September 2013. (KNN)
“FICCI’s Business Confidence Survey for Q4 FY13 indicated a decline in the Overall Business Confidence Index for the second consecutive quarter. The index dropped to 57.4 in Q4 FY13 survey from 61.2 in Q3 FY13,” said an official release.
There may be cause for alarm as participants from about 200 companies with a turnover ranging from Rs 10 lakh to one lakh crore did not expect any improvement over the next two quarters.
Although there have been some promising signs of recovery on the domestic front which need to be further strengthened, the global economic outlook looks bleak.
On the positive side, there has been an improvement in investment, employment and export prospects. Moreover, there has been considerable work initiated by the Cabinet Committee which has evoked a feel-good sentiment.
“However, going ahead it will be important to act on the policy front as well to ensure actualization of these investments,” said the survey.
Significantly, participants of the survey indicated that weak demand had been a worrying factor which has hampered the overall business performance, while some felt that increasing cost of credit remained a concern.
Further, the units did not seem optimistic about sales prospects and profit margin performance over the next six months.
The participating companies of the survey conducted for Q4 of FY 13 belonged to a varied array of sectors such as textiles, cement, financial services, chemicals, metal and metal products, automobiles, FMCG, electrical equipment and machinery, paper and paper products.
The survey was conducted during March 2013 and April 2013 and brought out expectations of the corporate members for the period April 2013 to September 2013. (KNN)
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