Indian firms less optimistic than last year: survey

Indian firms less optimistic than last year: survey

Reuters

Mumbai: Business confidence and optimism among Indian companies for the last quarter of 2008 is at an all-time low and primarily led by service companies, a survey by Dun & Bradstreet (D&B) showed.

The D&B Composite Business Optimism Index for fourth quarter of 2008 fell by 28.1% on year to 138.9 points, the biggest fall ever witnessed in the index, it said in a release on Wednesday.

“The crisis of confidence being witnessed across the world’s financial markets is reflected in the deteroriating sentiment of the Indian business community," D&B’s Chief Operating Officer, Kaushal Sampat said in the release.

The survey has been conducted on a sample of companies randomly selected from D&B’s commercial credit information file.

The sub-indices such as optimism index for new orders declined by 18 percentage points to 68% while the optimism index for net profit was at 61% as compared to 81% during the same period a year earlier, it said.

However, on a sequential basis, the main index rose marginally by 1.8%, mainly due to the low base of the previous quarter and many respondents anticipating no significant change from the current situation, it said adding 46% of the respondents saw inventory levels going up.

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