Wednesday, February 6, 2008

Business Confidence Index Analysis in India

29 Jan, 2008

The RBI’s business expectation index for January-March 2008 declined 2.5 percentage points over the previous quarter from 50.2% to 47.7%. This is the lowest that the outlook on the business situation has touched in the past six quarters. Even the overall industrial outlook survey has dipped. These indices have dipped lower than the current levels only during 2002-03.

The indices are compiled after surveying over 1,000 corporates. The survey based on net response (difference between those who were optimistic and those who were pessimistic) on the ‘quarter ahead’ expectation about the industrial performance was less favourable for most parameters. This decline, according to RBI, was on account of lower net responses or lesser optimism for major parameters of the survey such as the overall business situation, availability of finance, production, order books,capacity utilisation, employment, exports and profit margins over the previous quarter.


http://economictimes.indiatimes.com/Indicators/Business_confidence_dips_on_global_recession_fears/articleshow/2739332.cms


Research paper on methodology for constructing index by NCAER-_india
http://www.oecd.org/dataoecd/11/51/33653943.pdf

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