Significant improvements were noted in four out of six optimism indices. Notably, the optimism surrounding net profits has reached an eight-quarter high, with a substantial increase of 6 percentage points over the previous quarter. Similarly, the optimism for the volume of sales has edged up by 1 percentage point, and the expectation for selling prices has risen by 4 percentage points, as per Dun & Bradstreet.
However, the index also highlighted some areas of concern. Optimism for new orders slightly declined by 2 percentage points compared to the first quarter of 2024, suggesting some cautiousness in market demand expectations. In contrast, optimism for inventory levels saw a remarkable rise of 13 percentage points, indicating that businesses are preparing for increased production and sales.
The hiring outlook remains steady, with no change reported in the optimism for employee hiring compared to the previous quarter. This stability in employment expectations reflects a balanced approach by businesses amidst the current economic conditions.
“The Indian economy continues its steady performance as economy gains steam gathered in previous quarters. Businesses are anticipating continued policy alignment, supporting the higher optimism with index growing by 4.2 per cent (QoQ) for Q2 2024. Businesses benefitted from lower input prices, and sustaining consumer confidence. This reflects in higher optimism for selling prices, inventory levels, and net profit. With 8-quarter high optimism for profitability, businesses seem well placed to augment private capital expenditure due to strong cash flow generation,” said Arun Singh, global chief economist, Dun & Bradstreet.
Fibre2Fashion News Desk (DP)