High input costs, costly borrowing and a shaky world economy has hurt Indian companies in the last few months and the growth prospects in the coming quarters appear uncertain, the Confederation of Indian Industry (CII) has concluded from the findings of its latest Business Confidence Index (BCI) survey.
“It is obvious that industry’s outlook during the (December) quarter has been poor, but hopefully 2012 would improve sentiments and outlook,” director general Chandrajit Banerjee said.
The CII Business Confidence Index (CII-BCI) for October-December 2011 declined by 5.0 points, to 48.6 from 53.6 in the previous quarter, though the extent of the decline has moderated from the previous quarter.
The BCI has been falling in every successive quarter since the last quarter of 2010-11, and has fallen by a cumulative amount of 18.1 points, mirroring the general slowdown in industry. The survey, carried out among 250 companies, showed that there was a slowdown in sales, new orders, production and pre- tax profits during the third-quarter.
“Majority of the companies continue to expect credit availability to be constrained. Employment too showed stagnation with more than 8 out of 10 respondents declaring stagnation or decline in employment levels,” CII said in a statement.