HYDERABAD: Amid concerns of weak factory output data and potential impact of deficient monsoon, business sentiment in India during July-September quarter of 2015 is likely to remain subdued, according to Dun & Bradstreet (D&B).
The research firm’s Composite Business Optimism Index, which measures the pulse of the business community, stood at 127.2 for the July-September quarter, registering a mere 0.2 percentage increase as against the previous 3-month period.
“The index for the third quarter of 2015 seems subdued amid concerns surrounding the contraction in industrial production and the potential impact of deficient monsoon rainfall on rural demand and inflation,” said Kaushal Sampat, President & MD, D&B India.
According to D&B, the economic weakness in the domestic market was compounded by lower growth in China and continuing financial woes in Europe that raised doubts about the strength of growth of the world economy.
“These developments during the survey period could have played a role in pulling back expectations regarding new orders and employee levels thus tempering business confidence for Q3, 2015,” Sampat added.
He further noted that for business confidence to improve significantly, it is important that some key Bills get passed during the current monsoon session of Parliament, which begun on Tuesday.