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The business sentiment outlook for the January-March quarter of the financial year has shown deterioration in respect of demand conditions, a Reserve Bank of India (RNI) survey said on Wednesday.
The outlook on business sentiments in Q4: 2016-17 largely followed the pattern of October-December period, which too had witnessed moderation in the sentiments in demand condition for the second successive quarter, according to the latest Reserve Bank's Industrial Outlook Survey.
The outlook on business sentiments in Q4: 2016-17 largely followed a similar pattern, the survey said.
“However, in respect of demand condition (Order Books, Production), the outlook deteriorated. Pressure from a rise in the cost of raw material was expected to bring down profit margin. Improved sentiments were expressed in pending orders, exports, and cost of finance,” it said.
The survey elicited a response from 1,221 manufacturing companies.
RBI said the survey provides a qualitative assessment of the business situation of companies in the Indian manufacturing sector for Q3:2016-17 and their expectations for the ensuing quarter.
The survey responses are those of the respondents and are not necessarily shared by the Reserve Bank, the central bank added.
