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

PNB fraud: Why we need banking reforms

Billionaire jeweller Nirav Modi, whose properties are being searched after Punjab National Bank reported a massive fraud of Rs 11,000 crore, is a good reason why banking reforms

Gender based atrocities happens across the world: Dr Rashmi M Oza

“Gender based discrimination is worldwide and not alone in India. Offences against women are much more severe in cases of international trafficking, forced prostitution and pornography, women including migrant and refugee women face double barriers on virtue of their gender,"said Dr Rashmi M Oza

Rashtrapati Bhawan hosts LPG Panchayat for beneficiaries

A group of 104 women beneficiaries of the Pradhan Mantri Ujjwala Yojana participated and shared their experiences at LPG Panchayat organised at the Rashtrapati Bhawan on February 13. The women delegation, falling under the BPL category, came across 27 states to narrate their success stories

Bengaluru metro gets coach unit from BEML

BEML Ltd, a defence PSU, has delivered the first intermediate metro coach (car) unit to Bengaluru Metro Rail Corporation Limited (BMRCL). The intermediate car would be integrated with the existing three-car train sets to double the present passenger carrying capacity of the Bengaluru’

BHEL gets order for emission control equipment from NTPC

BHEL has got Rs 560 crore order for the supply and installation of flue gas desulphurisation (FGD) system from NTPC for 2x490 MW National Capital Power Station (NCPS). The Indian power sector has seen an uptick in the ordering of emission control equipment due to the revised and more stringe

UBI: The devil is in the detail

Instituting Universal Basic Income (UBI) requires public support spanning demographic lines, executive backing, and strong macroeconomic fundamentals. Weaken any leg of this tripod, and the redistributive preferences of any government may shift in favour of traditional welfare support and focusing on econo

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter