Wednesday, October 16, 2019
News

India's business sentiment lowest in 3 years: Report

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

New Delhi | Tuesday, 2019 3:45:05 AM IST
Adding to the persisting concerns of a weakening economy, an IHS Markit report on Monday said that business sentiment in the country in June fell to the lowest level since 2016 as companies are worried over a subdued economy, government policies, regulation and water shortages.

"Falling from '+18 per cent' in February to '+15 per cent' in June, the net balance of private sector companies foreseeing output growth in the year ahead matches the June 2016 reading and therefore is the joint-lowest since aggregate data became available in October 2009," the report said.

Predictions of softer activity growth underpin downward revisions to the profits outlook, subdued hiring plans and relatively muted capex intentions, said the report, adding that although a larger net balance of firms predict higher non-staff costs and output charges than in February, inflation expectations remain historically muted.

It further said: "Anecdotal evidence suggests that water shortages, public policies and weak sales have restricted sentiment in June. Companies are also concerned about potential rupee depreciation pushing prices for imported materials higher, a lack of skilled labour, likely tax hikes, financial difficulties and customers increasingly demanding discounts."

Some firms however hope to gain market shares as competitors exit the market, while others are confident about incentives and favourable government policies, it said.

"Sentiment towards profitability has faded since February, with the proportion of companies predicting growth exceeding those expecting a contraction by 15 per cent. This figure is well below the historical trend, but surpasses the global average."

--IANS rrb/sn/prs

( 263 Words)

2019-07-15-21:50:05 (IANS)

 
  LATEST COMMENTS (0)
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
 
MORE BUSINESS NEWS
Railways to run promotional trains, Hous...
Inox Wind signs additional deal for SECI...
Bajaj Finserv's Sparkling Diwali: Avail ...
TIE Global Summit to hold the 12th annua...
Bank of Maharashtra complains of fake ne...
Nitin Gupta meets Finance Minister Nirma...
More...
 
INDIA WORLD ASIA
Jalpaiguri forest officers seize Bengal ...
BJP leader Nirahua embarrasses Yogi on f...
Dushyant Chautala gets threat call from ...
'AK' app by Kejriwal to rope in party vo...
Goa Speaker hears plea for disqualificat...
This is why Pankaja isn't having it as e...
More...    
 
 Top Stories
Pro-democracy lawmakers heckle HK l... 
B.L. Santosh lashes out at Manmohan... 
Neil Patrick Harris joins 'Matrix 4... 
Persons with disabilities to be exe... 
After 2 deaths, PMC customers appea... 
Mindtree reports muted revenue grow... 
Defence bases in Punjab, Jammu on o... 
India to gift 75,000 MT of wheat to...