The latest CII Business Confidence Index has surged to the level of 50.3 in Jul-Sep 2020, bouncing back from its lowest reading of 41.0 recorded in Apr-Jun 2020. The stellar recovery in the index has been supported by the remarkable increase in the Expectations Index (EI), which rose 46% quarter-on-quarter, to the level of 55.2, as nation-wide lockdown restrictions were lifted, and businesses gradually began to reopen during the Jul-Sep quarter. The Current Situation Index (CSI), however, continued to trail below 50, at 40.6, depicting weak confidence during the Apr-Jun 2020- a period marked with stringent lockdown measures and complete shutdown of business operations.
The COVID-19 pandemic emerged as a sudden shock that caught everyone, government, businesses and consumers, off guard. The crisis not only had ramifications on people's health but led to the complete shutdown of economic activity for months together impacting business sentiment and ushering in uncertainty. As the government has gradually unlocked the economy and business activity has resumed, the recent CII Business Outlook Survey shows that business sentiment has bounced back. The survey was conducted during August-September 2020 and saw the participation of more than 150 firms across all industry sectors, including micro, small, medium and large enterprises, from different regions.
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