BackBusiness sentiment indicator falls to lowest level since April 2014
Sentiment towards the current business environment are now both back to pre-Modi levels, says the report
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The MNI Business Sentiment Indicator for India, a gauge of business sentiment from the Deutsche Börse group, has fallen to its lowest level in a year. The indicator, based on a monthly survey of companies listed on BSE, fell to 62.3 in May. The reading is in stark contrast to May last year, when the business sentiment indicator rocketed to an all-time high since the series was first started in November 2012 as a result of the new government led by Prime Minister Narendra Modi taking office.
“Sentiment towards the current business environment and expectations for the future are now both back to pre-Modi levels in a blow to the government as it completes its first year in office," the MNI India Business report for May said.
Among the indicators, new orders are now back to May 2013 levels, while the indicator for production is back to the level last seen in July 2013. The report says: “There was a sharp fall in the number of firms reporting an expansion in output in May, dashing hopes of the manufacturing revival envisioned by the government."
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