The Overall Business Confidence Index (OBCI) rose to a six-quarter high in the Business Confidence Survey carried out by industry body FICCI. This was supported by an improved assessment of the respondents with regard to current conditions as well as expectations.
While 63 per cent of the respondents in the survey reported current economic conditions as ‘moderately to substantially better’ compared to the last six months, as many as 75 per cent said they foresee a better performance at the economy level in the near term.
The survey results also show that the demand pulse is gradually gaining strength, which is a welcome sign, according to an official release. “Good monsoons and award of the Seventh Pay Commission will give a further trigger to demand,” it said.
Results pertaining to operational parameters indicated mixed signs. In the present round, participating companies seemed upbeat about near-term sales prospects and profits when compared to the previous survey results.
However, outlook on other parameters such as investments, employment and exports was by and large unchanged.
With regard to hiring prospects, 31 per cent of respondents in the latest round reported that they would consider hiring more people in the coming six months. The corresponding number in the last round was 29 per cent.