Business Confidence1 • The overall business sentiment as measured by the Business Confidence Index continues to be positive and stood at 127.6 in the third quarter of the current financial year (2023-24: Q3) (Figure 1.1). [...] • Majority of the firm (60%) of the firms covered in the sample expect better overall economic conditions in the next six months and 50% of the firms expect improvement in their financial position in the ensuing 6 months (Figure 1.2A). [...] Employment and Raw Material Costs • A great majority of firms (70% and above) continue to expect the prospects of employment in the next 6 months of both skilled and unskilled or casual and permanent workers to remain the same as in the past 3 months (Figure 1.4A). [...] Page 2 of 3 • Likewise, around 55 % of the firms expect the wages of skilled or unskilled workers in the coming 6 months to remain the same in the past 3 months (Figure 1.4B). [...] • Compared to the situation of last 3 months a smaller proportion of the firms - only 44% expect increase in prices of raw materials in the coming 6 months.
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- Business Confidence 2
- The overall business sentiment as measured by the Business Confidence Index continues to be positive and stood at 127.6 in the third quarter of the current financial year 2023-24 Q3 Figure 1.1. 2
- Up slightly from the last years third quarter 126.6 in 2022-23 Q3 even though the level of optimism is slightly muted compared to the second quarter of the current financial year 2023-24 Q2. 2
- The positive optimism is driven by the following factors. 2
- Figure 1.2A Overall expectations for the next six months 2
- A significant number of firms 98 view their present capacity utilisation to be close to or above optimal level and 46 of firms also perceive the current investment climate to be positive Figure 1.2B. 3
- 2. Business Prospects 3
- Majority of the firms 60 and above continue to expect their production domestic sales and new orders to increase in the next 6 months Figure 1.3A. 3
- Though the expectations about external trade exports and imports of raw materials and pre-tax profits for the next 6 months are comparatively muted. 3
- Employment and Raw Material Costs 3
- Figure 1.2B Investment Climate and Capacity Utilisation 3
- Figure 1.3A Production 3
- Domestic Sales and New Orders 3
- Figure 1.3B Exports Imports of Raw 3
- Materials and Pre Tax Profits 3
- Likewise around 55 of the firms expect the wages of skilled or unskilled workers in the coming 6 months to remain the same in the past 3 months Figure 1.4B. 4
- Unit costs of Raw Materials Electricity and Labour 4
- A majority of firms expect no changes in the unit costs of raw materials electricity and labour 4
- Employment 4
- 1.4B Expectations about 4
- Wages 4
- 1.5 Unit Costs of Raw Material Electricity 4
