Business sentiment hits all-time low since 1991, index falls 40.1% over the last quarter of FY20

0 0
Read Time:4 Minute, 15 Second

Business sentiment across Indian industry fell to its lowest level in the first quarter of this fiscal since 1991, according to the National Council of Applied Economic Research’s (NCAER) Business Confidence Index (BCI).

With a massive 62% decline from the year-ago level, the BCI stood at 46.4 points for the quarter, a release said on Friday. On a quarterly basis, the index fell 40.1% over the last quarter of FY20, which in turn saw a 30.4% decline from the previous quarter.

The think tank’s Business Expectation Survey (BES), of which the BCI formed a part of, found substantial regional variations in business sentiment. While the BCI for North India increased by 25.1% over the quarter, it fell by 89.3% and 68.1% for East and West India respectively.

The figure was -53.9% for South India in July, however, owing to difficulties in data collection during March and April, this was not a representative sample for the quarter, NCAER said.

The survey also found dismal trends in employment across categories. While firms reported a 6.7% decline in employment of unskilled labour over Q4 of FY20, the figure jumped to 46% during Q1 of the ongoing fiscal.

Although to a lesser extent, the figure for skilled labour stood at 18.2% for the June quarter of FY21 compared to 4.3% in the previous quarter.

Suggesting that labour markets would be similarly subdued in the future, 77% of firms expected no change in managerial or skilled labour employment over the next six months.

The corresponding figure for unskilled labour stood at 58%. The quarterly BES surveys 600 companies from six cities including Mumbai, Pune, Delhi NCR, Kolkata, Bengaluru and Chennai.

Source link

0 %
0 %
0 %
0 %
0 %
0 %

Average Rating

5 Star
4 Star
3 Star
2 Star
1 Star
(Add your review)

Leave a Reply

Your email address will not be published. Required fields are marked *