RBI survey predicts weaker demand conditions in Q11 min read . Updated: 11 Jul 2013, 09:59 PM IST
Business Expectation Index for the first quarter of the current fiscal year shows a sharp drop
The Reserve Bank of India’s (RBI’s) Industrial Outlook Survey contains the Business Expectation Index (BEI), which is a snapshot of the industrial outlook for each quarter. As the chart shows, BEI for the first quarter (Q1) of the current fiscal year shows a sharp drop. The survey says that demand conditions weakened in Q1 of FY14, as seen from the deterioration in expectations on various parameters such as production, order book, capacity utilization, inventory, exports and imports. “Analysis of data from the previous survey rounds indicates that one-quarter ahead outlook is generally able to track the actual movement in the case of most of the parameters," the survey says. We’ll know that soon enough, as the corporate financial results trickle in this month.