The overall Business Confidence Index stood at 63.9 currently vis-a-vis an index value of 75.7 in the previous round, according to the latest survey conducted by the All India Association of Industries (AIAI).
The findings of the latest survey report a moderation in optimism level of the participants. As per the survey results, the Overall Business Confidence Index stood at 63.9 in the current round vis-à-vis an index value of 75.7 in the previous round.
Both current condition as well as near term expectations noted deterioration this time around. The fresh surge in infections led by the Omicron variant has led to this significant decline in the overall index value, AIAI said.
The weakening of the sentiment amongst industry members was also corroborated by a dip in the near-term outlook of the participants on some of the major operational parameters such as sales prospects, selling price, profits and production, said AIAI President Dr Vijay Kalantri.
The recurrent waves of the pandemic is delaying the strengthening the
economic recovery and is preventing the companies from undertaking concrete expansion plans. As per the survey results, the capacity utilization levels remain low – which is also a manifestation of the persisting weak demand conditions. The proportion of respondents, citing weak demand situation as a constraining factor, stood at 60% in the latest survey round as compared to about 50% stating the same in the previous round.
Also, AIAI said, increasing raw material costs has continued to be a major constraining factor for companies. About 82% of the participating companies stated higher raw material costs as a major impediment for their businesses in the present survey. This was higher than 80% participants stating likewise in the previous round.
With the global economy facing a fresh wave of the pandemic led by Omicron variant, risk from new covid-19 strains was touted as the topmost trend going forward followed by persistent increase in global commodity prices and sustained geo-political tensions across the world, AIAI survey revealed.
On the domestic front, participating companies cited inflation risks along with future possibilities of the fresh wave of covid-19 pandemic as the topmost developments that they will keep a watch on in 2022.
The overall Business Confidence Index stood at 63.9 currently vis-a-vis an index value of 75.7 in the previous round, according to the latest survey conducted by the All India Association of Industries (AIAI).
The findings of the latest survey report a moderation in optimism level of the participants. As per the survey results, the Overall Business Confidence Index stood at 63.9 in the current round vis-à-vis an index value of 75.7 in the previous round.
Both current condition as well as near term expectations noted deterioration this time around. The fresh surge in infections led by the Omicron variant has led to this significant decline in the overall index value, AIAI said.
The weakening of the sentiment amongst industry members was also corroborated by a dip in the near-term outlook of the participants on some of the major operational parameters such as sales prospects, selling price, profits and production, said AIAI President Dr Vijay Kalantri.
The recurrent waves of the pandemic is delaying the strengthening the
economic recovery and is preventing the companies from undertaking concrete expansion plans. As per the survey results, the capacity utilization levels remain low – which is also a manifestation of the persisting weak demand conditions. The proportion of respondents, citing weak demand situation as a constraining factor, stood at 60% in the latest survey round as compared to about 50% stating the same in the previous round.
Also, AIAI said, increasing raw material costs has continued to be a major constraining factor for companies. About 82% of the participating companies stated higher raw material costs as a major impediment for their businesses in the present survey. This was higher than 80% participants stating likewise in the previous round.
With the global economy facing a fresh wave of the pandemic led by Omicron variant, risk from new covid-19 strains was touted as the topmost trend going forward followed by persistent increase in global commodity prices and sustained geo-political tensions across the world, AIAI survey revealed.
On the domestic front, participating companies cited inflation risks along with future possibilities of the fresh wave of covid-19 pandemic as the topmost developments that they will keep a watch on in 2022.
