Business optimism high: Report

Dun & Bradstreet, India, released its Business Optimism Index (BOI) for the country for January-March (Q1) 2006, which reveals that business confidence has risen compared with the year-ago quarter.

However, the Composite BOI has registered a decline compared with Q4 2005 when it was at an all-time high of 186.9 points.

For Q1 2006, the BOI stands at 167.7 points, 21.1 per cent higher than the same quarter the previous year (138.4).

In Q1 2006, all six optimism indices "" volume of sales, net profits, selling prices, new orders, inventory levels and employees "" have registered an increase as compared with the same quarter last year.

The Business Expectations Survey for Q1 2006 reveals high optimism with respect to demand conditions.The Optimism Index for Volume of Sales stands at 88 per cent for Q1 2006, with the capital goods sector, consumer durable and consumer non-durable sector, and services sectors as the most optimistic.

In terms of net profit, about 85 per cent of the respondents perceived an increase in profits, while about 13 per cent estimated profit levels to remain stable. The Optimism Index for Net Profits stands at 83 per cent.

"In spite of a slight dampening as compared to Q4 2005, business sentiment remains strong," said Dr Manoj Vaish, president & CEO, Dun & Bradstreet, India.

"Going forward, the policy announcements made during the Union Budget for FY07 will play a key role in determining business expectations during the forthcoming quarter."