Rising inflation hits business confidence, says Ficci survey
0 views
Skip to first unread message
N.Sukumar
Jun 30, 2008, 3:42:20 AM6/30/08
to Kences1
Runaway inflation, combined with high interest rates, has further
dented the business confidence of Indian industry, a survey by the
Federation of Indian Chambers of Commerce and Industry (Ficci) for the
fourth quarter of 2007-08 has revealed.
As many as 64 per cent of the 413 companies surveyed said that the
economic conditions had worsened, compared with the past six months.
In the previous survey, for the third quarter (October-December) of
2007-08, 50 per cent of the respondents had expressed a similar view.
In the survey for the fourth quarter of 2006-07, only 14 per cent of
the respondents said that the economic conditions had worsened.
The latest survey also reveals that the outlook on parameters like
sales, investments and employment took a dip, while that on profits
remained flat, compared with the third quarter survey.
A larger number of companies expect weak demand. As many as 37 per
cent of the respondents mentioned weak market demand as a factor
adversely affecting their business performance, as against 20 per cent
in the same quarter of 2006-07.
As many as 95 per cent of the respondents pointed towards the rising
cost of raw materials and inputs as the key constraint to their
performance, as against 70 per cent in the fourth quarter of 2006-07.
Moreover, 61 per cent of the companies surveyed cited rising wages as
a cause for concern, while a higher number of respondents reported
high cost of credit as a cause for worry.
The only silver lining in the survey was in the form of expectations
of better economic conditions later during the year. "In their
assessment of the economic situation, members of corporate India have
reported that the economic trends may have reached their worst levels
and from now on one can expect some improvement," a Ficci release
said.
The survey found that 44 per cent of the companies covered by it
expected their performance would improve in Q1 (April-June) and Q2
(July-September) in 2008-09.
N.Sukumar
Research Analyst
www.kences1.blogspot.com
dented the business confidence of Indian industry, a survey by the
Federation of Indian Chambers of Commerce and Industry (Ficci) for the
fourth quarter of 2007-08 has revealed.
As many as 64 per cent of the 413 companies surveyed said that the
economic conditions had worsened, compared with the past six months.
In the previous survey, for the third quarter (October-December) of
2007-08, 50 per cent of the respondents had expressed a similar view.
In the survey for the fourth quarter of 2006-07, only 14 per cent of
the respondents said that the economic conditions had worsened.
The latest survey also reveals that the outlook on parameters like
sales, investments and employment took a dip, while that on profits
remained flat, compared with the third quarter survey.
A larger number of companies expect weak demand. As many as 37 per
cent of the respondents mentioned weak market demand as a factor
adversely affecting their business performance, as against 20 per cent
in the same quarter of 2006-07.
As many as 95 per cent of the respondents pointed towards the rising
cost of raw materials and inputs as the key constraint to their
performance, as against 70 per cent in the fourth quarter of 2006-07.
Moreover, 61 per cent of the companies surveyed cited rising wages as
a cause for concern, while a higher number of respondents reported
high cost of credit as a cause for worry.
The only silver lining in the survey was in the form of expectations
of better economic conditions later during the year. "In their
assessment of the economic situation, members of corporate India have
reported that the economic trends may have reached their worst levels
and from now on one can expect some improvement," a Ficci release
said.
The survey found that 44 per cent of the companies covered by it
expected their performance would improve in Q1 (April-June) and Q2
(July-September) in 2008-09.
N.Sukumar
Research Analyst
www.kences1.blogspot.com
Reply all
Reply to author
Forward
0 new messages