Business confidence improves in Q4

Hyderabad: Registering an increase of 6.4% during Q4 2017, Dun & Bradstreet Composite Business Optimism Index improved to 76.7 when compared to Q3 2017. However, it decreased by 4.1 per cent as compared to Q4 2016. Based on the responses received, three out of the six optimism indices have registered an increase as compared to Q3 2017.

Optimism for net profits stands at 56 per cent, an increase of one percentage point as compared to Q3 2017, but a decrease of nine percentage points as compared to Q4 2016. Manish Sinha, MD (India), Dun & Bradstreet, said: “It appears that the initiatives taken by the government, and improvement in some macroeconomic indicators have allayed some concerns of economic slowdown.

Specific events that have helped optimism levels are government policies to help small enterprises and exporters on GST, the festive season demand and recent hike in pay scales to teachers and academic staff. The supply disruptions arising from GST rollout is also anticipated to reverse gradually as the companies adapt to the new system after enduring the initial glitches.”

“Going forward, the reform agenda of the Government should continue uninhibited. However, it is the pace of implementation of these initiatives that would continue to instill optimism amongst the companies as it would indicate that the government remains committed to reinforce the growth momentum of the economy.” he added. Around 71 per cent of the respondents expect volume of sales to increase in Q4 2017 compared to around 79 per cent in Q4 2016, a decrease of eight percentage points.