Decline in business sentiment: RBI survey

The survey indicated slight moderation in the sentiments in demand condition for the second successive quarter

GN Bureau | January 27, 2017


#RBI   #Banking   #Reserve Bank of India  


The Reserve Bank of India’s Industrial Outlook Survey has indicated a decline in business sentiments.

This round of the survey was conducted during October-December 2016. The survey elicited response from 1,221 manufacturing companies. The survey provides qualitative assessment of business situation of companies in the Indian manufacturing sector for Q3:2016-17 and their expectations for the ensuing quarter Q4:2016-17. Results of 75th round (Q2:2016-17) of the survey were released on October 4, 2016 on the RBI website.

The survey responses are those of the respondents and are not necessarily shared by the Reserve Bank of India.

Read: India a bright spot in world economy: KPMG

On assessment for Q3:2016-17, the survey indicated slight moderation in the sentiments in demand condition for the second successive quarter. In respect of several parameters like order books, capacity utilisation and imports, the level of optimism was lower in this quarter than Q2:2016-17. However, the respondents were somewhat more optimistic about the export performance than Q2:2016-17 while the optimism on production remained unchanged.

Availability of finance from banks and other sources were perceived to have worsened. However, due to reduced pessimism about the cost of finance and the cost of raw material, the sentiment on profit margin remained largely unchanged.

Overall, the business sentiments of the Indian manufacturing sector, as inferred from the Business Expectation Index (BEI), deteriorated for the second successive quarter.

On expectation for Q4: 2016-17, the outlook on business sentiments in Q4: 2016-17 largely followed similar pattern. However, in respect of demand condition (Order Books, Production), the outlook deteriorated. Pressure from rise in cost of raw material was expected to bring down profit margin. Improved sentiments were expressed in pending orders, exports, and cost of finance.

Read: RBI’s Industrial Outlook Survey


 

Comments

 

Other News

AAI plans development of Lucknow, Deoghar, Rajkot and Allahabad airports

The airports at Lucknow, Deoghar, Rajkot and Allahabad would be spruced up by Airports Authority of India to improve and develop infrastructure to meet growing traffic demands. The authority plans to construct a new integrated passenger terminal building at Chaudhary Charan Singh Internation

Housing for all: A realisable dream

The Indian constitution states that “the state shall strive to promote the welfare of the people, protecting as effectively as it may a social order in which justice, social, economic and political for all.” It is on these basic values that India continues to endeavour to provide its people bas

Why judicial reforms matter

Two path-breaking judgments by the Supreme Court on privacy and triple talaq were a reminder of how much we have begun to rely on the judiciary to make sense of a conflicted world. Seventy years after Independence, India’s judiciary has many accomplishments to its credit. A large judicial infrastruct

Sail supplies 80% steel for Sardar Sarovar project

Maharatna enterprise Steel Authority of India Limited (SAIL) has said that it supplied 80 percent steel required for construction of the Sardar Sarovar Project unveiled by prime minister Narendra Modi.    SAIL supplied around 85,000 tonnes of steel for the entire Sardar

Why university and college teachers are unhappy across the country

College and university teachers all across the country seem too much worried about the policy shift with respect to their pay and regulations from centre to states. Therefore, they may be gearing up for an indefinite movement in the coming days, a situation that was built only during the previous regime of

Sardar Sarovar saga reaches closure, finally

After a long wait of almost half a century, filled with more twists and turns than the river Narmada’s, the Sardar Sarovar project is finally complete.   Prime minister Narendra Modi dedicated the multipurpose project to the nation on Sunday, which also happened to be h



Video

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter