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Business optimism for the January-March 2019 quarter witnessed a decline of over 7 per cent on a quarterly basis, due to uncertainties regarding the outcome of general elections and continuation of reform agenda, according to a report.
The Dun & Bradstreet Composite Business Optimism Index stood at 73.8 during January-March 2019, a fall of 7.2 per cent as compared to October-December 2018.
Moreover, five of the six parameters -- optimism for net profit, new orders, volume of sales, inventory and selling price -- also registered a decrease compared to fourth quarter of 2018, the report noted. The sixth parameter, workforce employed, saw a rise of 7 percentage points.
"The ruling party in the Centre lost three states in the state elections, possibly leading to questions amongst businesses, whether we would have a new government in Centre, whether we would have a continued reform agenda.
Going ahead, the announcements in the Union Budget 2019-20 and trepidations over the outcome of the general elections are likely to weigh upon the sentiment of India Inc," said Manish Sinha, Managing Director India, Dun & Bradstreet.
Further, there are apprehensions over the potential economic slowdown in the US and the weakening global economic growth, adding to domestic growth concerns, Sinha added.
The index measures the pulse of the business community and is arrived at on the basis of a quarterly survey of business expectations.
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