Dun &Bradstreet Sees Business Confidence Rising In Fourth Quarter

Mumbai, October 17: | Updated: Oct 18 2002, 05:30am hrs
Business confidence for the last quarter of 2002 will see an improvement as compared to that in the previous quarter, according to a business expectations survey by Dun & Bradstreet.

Five of the six optimism indices coming from most economic quarters have recorded an improvement, according to Dun & Bradstreets Business Optimism Index for India.

The survey carried out in September, states that 72 per cent of the respondents expect an improvement in their sales volume for the fourth quarter and only seven per cent expect a decline, with the resultant optimism index at 65 per cent.

Corporate India expects an improvement in net profits with 68 per cent of the respondents expecting their net profits to go up, whereas only 12 per cent feel that their profitability could come under pressure. The resultant Optimism Index at 56 per cent is again an all-time high for this index. However, Indian corporates are less optimistic about getting higher prices for their products. The optimum index for selling prices at five per cent is at the same level as the previous quarter, the survey said.

Signs of a pick-up in activity are clearly evident from the optimism index for new orders which has touched a new high of 68 per cent. After staying in the negative territory for a year, the optimum index for inventory levels has entered the positive zone for the fourth quarter this year.

Although a large majority of respondents, about 61 per cent still expect no change in their inventory levels, the optimism index at seven per cent is the highest for this index in the last two years. Job seekers too have something to cheer about since the optimism index for employees at 16 per cent is a remarkable improvement over the two per cent recorded in the third quarter this year.