Manufacturers pessimistic biz prospects in 2009: KPMG

Indian manufacturing firms have turned pessimistic about their business prospects in 2009 with deteriorating economic conditions set to negatively impact demand and output, a latest KPMG survey says.
    
According to the winter 2009 'KPMG Business Outlook Survey', manufacturing firms across the BRIC region (Brazil, Russia, India and China) have revealed a plunge in sentiment in the wake of the global economic turmoil and business revenues are expected to decline modestly this year.
   
"Confidence balances have fallen steeply from the robust levels seen last summer, reflecting marked downward revisions to sales forecasts for 2009 in line with the deterioration in worldwide demand conditions," the KPMG report said.
    
Indian manufacturers' are pessimistic regarding their business prospects for 2009 as slump in economic conditions is likely to severely affect demand and output, the January outlook survey revealed.
    
Further, the latest findings mark a severe drop in sentiment from the buoyant optimism recorded last summer, it added.
    
"Business activity in the Indian manufacturing sector is set for a slight contraction over the coming 12 months, as signalled by a net balance of negative 1.6," the report stated.