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Source: cision | Published on: Wednesday, 07 February 2024
The Dun & Bradstreet Business Optimism index records an increase of 3.6% (q-o-q) in Q1 2024
MUMBAI, India, Feb. 7, 2024 -- The Dun & Bradstreet Composite Business Optimism Index stands at 72.8 for Q1 2024, 3.6% higher compared to Q4 2023. Five out of six optimism indices have shown improvement while optimism for fresh hiring remains at the ten-quarter low. The Dun & Bradstreet Composite Business Optimism Index, which has been measuring the changing business sentiment of India Inc. since 2002, is a leading indicator for India's overall growth, with a correlation co-efficient of around 80% with the Gross Domestic Product (GDP).
Highlights
Arun Singh, Global Chief Economist, Dun & Bradstreet, said, "India shines as a stable force amid global economic shifts, with a notable 3.6 percentage points rise in optimism level among businesses for Q1 2024. Despite a post-festive season dip in demand, the outlook for margin expansion remains strong, buoyed by the potential of lower global commodity prices. India's robust capital expenditure cycle, fueled by a vibrant government and private sector collaboration, fueled by ample credit, propels optimism for medium and large enterprises. In the face of global uncertainties and supply chain challenges, India's growth story stands resilient, showcasing the nation's unwavering commitment to progress on the global economic stage."
Key findings from the Q1 2024 survey
The optimism for increase in volume of sales has improved by 4 percentage points in Q1 2024, compared to previous quarter. Real Estate activities have recorded the highest growth, while the mining sector has recorded the lowest growth in optimism regarding increase in volume of sales on quarterly basis.
The optimism for increase in net profits has improved by 5 percentage points in Q1 2024, compared to Q4 2023. Automobiles industry has recorded the highest growth, while manufacturing of metals has recorded the lowest growth in optimism with respect to increase in net profits on quarterly basis.
The optimism for increase in selling prices has improved by 1 percentage point on quarterly basis in Q1 2024. The transportation and storage industries have recorded the highest growth, while automobiles industry has recorded the lowest growth in optimism regarding increase in level of selling prices compared to previous quarter.
The optimism for increase in new orders has improved by 7 percentage points in Q1 2024, compared to Q4 2023. the textiles industry has recorded the highest growth, while wholesale and retail trade have recorded the lowest growth in optimism regarding the expansion of order books on quarterly basis.
The optimism for inventory levels has moved up by 6 percentage points in Q1 2024, compared to Q4 2023. The manufacturing of automobiles has recorded the highest growth, while the electricals, electronics and hardware industries have recorded the lowest growth in optimism regarding inventory levels on quarterly basis.
The optimism for hiring of employees is stagnant in Q1 2024 with no change recorded compared to previous quarter. Chemicals, rubber and plastics industries have recorded the highest growth, while the manufacturing of food, beverages and tobacco has recorded the lowest growth in optimism regarding the fresh hiring of employees, compared to previous quarter.
Notes to Editors
The Business Optimism Index (BOI) is a quarterly survey-based index designed to measure the pulse of the Indian business community across India and has served as a reliable indicator of the economy. Dun & Bradstreet surveys respondents (senior management) across India from the Manufacturing and Services sector, covering businesses of varying scale (large, medium and small) to calculate the BOI. Respondents are asked about their expectations (in terms of increase, decrease, or no change) regarding their company's performance (Six BOI Parameters) in the ensuing quarter over the same quarter in the previous year.
About Dun & Bradstreet:
Dun & Bradstreet, a leading global provider of business decisioning data and analytics, enables companies around the world to improve their business performance. Dun & Bradstreet's Data Cloud fuels solutions and delivers insights that empower customers to accelerate revenue, lower cost, mitigate risk and transform their businesses. Since 1841, companies of every size have relied on Dun & Bradstreet to help them manage risk and reveal opportunity. For more information on Dun & Bradstreet, please visit www.dnb.com.
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