labels: economy - general
Business confidence falls in Jan-March quarternews
05 May 2007

New Delhi: According the `Quarterly Review 2007 Business Expectations Survey'' published by the National Council of Applied Economic Research (NCAER), the Business Confidence Index (BCI) and the Political Confidence Index (PCI) for the January-March quarter this year fell by 3.8 per cent over the previous quarter.

The BCI slipped from its level of 157.3 points in the previous quarter to 151.3 points. The survey points out that the BCI fell in all four of its main components - overall economic conditions, investment climate, financial positions of firms and capacity utilisation. The survey further states that the perception of firms on the current investment climate has seen the steepest fall.

Another startling highlight was that the BCI has seen a decline in all the sectors. While the capital goods sector showed the least decline, the intermediates sector showed the highest BCI decline.
Among the four regions of the country, the Western and Southern regions saw a greater loss in business confidence.

However, the loss in BCI does not imply any decline in the key performance indicators of firms. The production, domestic sales, exports, imports and profits are all expected to increase in the next six months.

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Business confidence falls in Jan-March quarter