SMEs showing strong signs of consolidation in Q2: CII survey

Small and medium enterprises are upbeat and showing a buoyant outlook in terms of employment and capacity expansion after getting hit by the global financial crisis, a CII survey said.

"After suffering heavily in terms of investment, output and employment during the global financial crisis, SMEs are showing strong signs of consolidation," it said.

The survey for the July-September period reported bullish sentiments of SMEs with the overall Business Confidence Index (BCI), standing at a high of 65.6 on a scale of 0-100. The outlook was low in the previous quarter.

"In fact, gross sales, new orders and capacity utilisation recorded a value of BCI greater than 75, indicating an expectation of a significantly high favourable change over the previous quarter," it said.
    
The survey was based on a list of 14 outlook indicators, including gross sales, new orders, input costs and credit availability.