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    Biz optimism for Jul-Sep falls 10.7 pc amid continued slowdown in consumption

    Synopsis

    Business optimism for the July-September quarter in India decreased by 10.7 per cent.

    Agencies
    Meanwhile, optimism for volume of sales stood at 65 per cent - down 9 percentage points as compared to the second quarter of this year.
    New Delhi: Business optimism for the July-September quarter in India decreased by 10.7 per cent amid continued slowdown in consumption and investment demand, says a report. The Dun & Bradstreet Composite Business Optimism Index stood at 70 during Q3 (July-September) 2019, registering a decrease of 10.7 per cent as compared to Q2 (April-June) 2019.

    "Heightened concerns related to the extended slowdown in the domestic economy and weakening of global economic activity might have weighed upon the optimism levels of businesses," said Manish Sinha, Managing Director - India, Dun & Bradstreet.

    As per the report, optimism for net profits stood at 66 per cent, registering a decrease of 3 percentage points as compared to Q2 2019, while optimism for new orders stood at 57 per cent - a fall of 6 percentage points as compared to Q2 2019.

    Meanwhile, optimism for volume of sales stood at 65 per cent - down 9 percentage points as compared to the second quarter of this year.

    "Multiple issues like crisis in the NBFC segment, rural distress, subdued lending to the micro and small firms, problems in the automobile and aviation sectors and rising trade barriers are imposing constraints to growth," Sinha said; adding that going ahead, businesses are not expecting a revival in demand in the near term.

    The Dun & Bradstreet Composite Business Optimism Index measures the pulse of the business community and serves as a reliable benchmark for investors. It is arrived at on the basis of a quarterly survey of business expectations.
    (Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

    10 Comments on this Story

    deshbhaktcommunist386 days ago
    Business sentiment have been down from year 2016 but BJP used nationalistic-anti muslim propaganda to garner votes.Plus ,BJP gave largest amount of freebies ever in entire history of india from 1947.The bill always comes up.SO modiji is trying to loot middle classes-corporates to fulfill wishes of his dumb-uneducated-unskilled-freeloader-violent-voters.That is not working because taxing salaried classes does not generate exports.I think BJP wants to destroy india in deshpremi way
    Ajit Grewal386 days ago
    Good performance by modi - all numbers above the lowest so far
    Hemant Pisat386 days ago
    Consumption will only pick up if government decides to bring petroleum products under GST''s 15-18% slab, as these are the products inflate or deflates consumer products. Actually they have little choice but are knowingly adamant.
    The Economic Times