Only 22 per cent of the 165 respondents spread across a spectrum of private and public industry groups were pessimistic about the general business conditions, against 47 per cent in the last survey conducted six months ago.

Further, the number of the optimists have more than doubled to 38 per cent from 16 per cent in the last survey.

The 51st business outlook survey relates to the actual performance of the Indian industry during October-March 1998-99 and the forecast for April-September 1999.

About 38 per cent of the respondents to the survey are manufacturers of goods, 32 per cent manufacturers of capital goods, 12 per cent manufacturers of consumer goods both durable and non-durable while 10 per cent are manufacturers of basic goods, eight per cent sectorcompanies.

According to a preliminary analysis of the latest survey, the number of those who expect the present trend to continue were 40 per cent compared to 37 per cent in the previous survey.

Of the responding corporates, those expecting to authorise higher capital expenditure have increased from 45 per cent in the previous survey to 63 per cent. As a percentage of the total response a break up of the respondents predicting an increase shows that 32 per cent expect higher capital expenditure between 5 and 10 per cent, 15 per cent between 10 and 20 per cent, 6 per cent between 20 and 50 per cent and 10 per cent above 50 per cent.

Of the respondents, 37 per cent expect to authorise less capital investment during the same period as against 55 per cent in the previous survey. As a percentage of the total response, a break-up of those expecting lower capital expenditure shows that 20 per cent expect it to decrease between 5 and 10 per cent, 6 per cent between 10 and 20 per cent, 4 per cent between 20 and50 per cent and 7 per cent above 50 per cent.

The survey reveals a return to stability on the prices front with 80 per cent of the respondents expecting the inflation rate to be within the 5 to 10 per cent range as against 59 per cent in the previous survey. Only 20 per cent of the respondents expect an upward pressure on inflation and the inflation rate to exceed 10 per cent.

While 89 per cent of the respondents expect an increase in production, 11 per cent foresee a decline in production in their organisation.

After a tardy growth during most of 1998-99, industrial production is again expected to record a moderate growth during the next financial year, 24 per cent of the respondents have forecast a production growth in their organisation to be between 0-5 per cent and 27 per cent foreseeing production growth to be between 5-10 per cent.

A moderately high 38 per cent of the respondents forecast a high growth in production of above 10 per cent as against only 17 per cent in the last survey. Therespondents foreseeing negative growth of production during 1999-2000 have decreased to 11 per cent from 24 per cent in the previous survey.

The respondents projecting an increase in employment have increased from 39 per cent in the previous survey to 54 per cent in the current survey. A break up of those projecting an increase as a percentage of total respondents shows that 39 per cent of the respondents envisage an increase in employment between 0-5 per cent. Eleven per cent between 5-10 per cent and 4 per cent expect employment to increase above 10 per cent.

Of the respondents, 46 per cent expect lower employment in their organisation down from 61 per cent in the last survey. A break up of those who foresee a decline in employment in their organisations from the current levels shows the 33 per cent expect the decline to be between 0 and 5 per cent, 10 per cent between 5 and 10 per cent and 3 per cent above 10 per cent.

Low to moderate levels of capacity utilisation reflects the lull in demand in theeconomy and the low growth in production, the survey added.

While only 21 per cent of the respondents achieved capacity utilisation above 80 per cent of the respondents, 47 per cent reported a capacity utilisation between 61 and 80 per cent, 23 per cent between 41 and 60 per cent and 9 per cent reported a capacity utilisation of below 40 per cent.