Q3 biz optimism index up 12% over last year
New Delhi: Corporate India's business optimism index for the July-September quarter registered an 11.7 per cent rise over last year, while on a quarter-on-quarter basis it has declined. The Dun & Bradstreet Composite Business Optimism Index stood at 80.6 in the third quarter of 2018, an increase of 11.7 per cent as compared to the corresponding period last year.
Business optimism was low in the July-September quarter of 2017, as a result of implementation issues on goods and services tax (GST) and effects of demonetisation.
"So, compared with that (July-September 2017), current sentiment is better," Dun & Bradstreet Managing Director India Manish Sinha said, adding that on a quarter-on-quarter basis, the index has declined due to the domestic and global headwinds.
According to Sinha, domestically, the factors that have weakened the optimism level amongst India Inc include rising NPA levels, the increase in inflationary pressures, rise in imported inflation on account of elevated crude oil prices, weak rupee and hike in policy rate in June 2018.
"On the external front, risks from geopolitical issues that threaten to keep oil prices elevated, a disorderly tightening of global financial conditions and escalating international trade tensions have not only weighed on the current optimism level but would continue to impact it in the near to medium term," Sinha added.