Latest News Site


Business sentiment in the country fell to the lowest level: Report

Business sentiment in the country fell to the lowest level: Report
July 15
17:19 2019

New Delhi, July 15: 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.”


G.E.L Shop Association
Novelty Fashion Mall
Fly Kitchen
Harsha Plastics
Swastik Tiles
Reshika Boutique
Paul Opticals
Metro Glass
Krsna Restaurant
Motilal Oswal
Chotanagpur Handloom
Kamalia Sales
Home Essentials

About Author



Related Articles


No Comments Yet!

There are no comments at the moment, do you want to add one?

Write a comment

Write a Comment

Sponsored Ad



    भारतीय एवं विश्व इतिहास में 19 अगस्त की प्रमुख घटनाएं

भारतीय एवं विश्व इतिहास में 19 अगस्त की प्रमुख घटनाएं

0 comment Read Full Article

Subscribe to Our Newsletter