New Delhi: Indian companies expect earnings to fall in the next six months due to higher interest rates and are less confident about the economy as a result, according to the results of a survey released on Monday.

Though a large part of the companies remained optimistic about the economy for the first half of the financial year beginning April, the number companies who expected gains fell sharply from last quarter, a survey by the Federation of Indian Chambers of Commerce and Industry (FICCI) revealed.

Expectations of higher sales fell from 78 per cent to 68 per cent compared with a survey done in the quarter that ended in March, the industry lobby group said.

Of 418 companies surveyed in April, 50 per cent expected higher profits in the next six months, compared to 52 per cent in the January-March quarter survey, the fourth quarter of India''s financial year.

Overall, optimism about the economy in the next six months declined from 72 per cent to 59 per cent as firms anticipated lower consumer spending because of monetary tightening measures by the central bank to contain inflation, the survey said.

The survey found that industries such as food processing, textiles, housing, construction and automobiles were apprehensive about a fall in demand and profits.

The survey, however, reflected a positive outlook for exports, investments and employment.

More than half the respondents expected a surge in exports and investments.