The Dun & Bradstreet (D&B) Composite Business Optimism Index (BOI) for Q3 2010 rose to a two-year high of 150.0 from 132.1 in Q3 2009, recording an increase of almost 13.6 per cent on a year-on-year (YoY) basis, D&B said in a statement in Mumbai.
The sustained improvement in the BOI, which is now at a two-year high, is reflective of the continuous strengthening of confidence amongst the corporates, it said.
Robust growth in industrial production, stabilising domestic consumption-demand, rapidly-growing investment demand coupled with increase in imports and exports seems to have supported growing business confidence, D&B said.
Improvement in hiring intentions of the corporates, as reflected in a 10 quarter high resultant optimism for employees, is a positive development and augurs well for the future growth prospects of the economy.
However, India Inc remains cautious regarding its profit expectations, as margins are likely to be under pressure on account of high input prices and rising interest rates" D&B's President & CEO, Kaushal Sampat, said.