Business optimism index falls

The Dun & Bradstreet India Business Optimism Index (BOI) for April-June 2004 fell 6.4 per cent off the peak experienced in the previous quarter to 139.3.

The D&B Business Expectations Survey for the second quarter of 2004 reveals that business confidence has declined compared to the previous quarter. The survey was conducted in March 2004 when the economy was gearing up for the general elections.

However, despite the fall the index is still 5.4 per cent higher than its level in Q4 2003. All six optimism indices -- volume of sales, net profits, selling prices, new orders, inventory and employees --declined in Q2 2004 compared to the previous year.

"The corporate sector has moderated its expectations of demand growth to some extent. But still by and large respondents remain bullish about the sales prospects," Dun & Bradstreet said in a media release.