MSEs SEE BUSINESS PROSPECTS OVER ‘POSITIVE MOMENTUM’: CRISIDEX

Micro and small enterprises are getting more and more optimistic about their business prospects.

The CriSidEx index, which measures sentiment among micro and small enterprises (MSEs) rose to a threequarter high of 127 in the first quarter of the current financial year (FY19), up from 121 in the fourth quarter (Q4) of the previous financial year (FY18).

Within the manufacturing sector, most segments brimmed with optimism. “MSEs in metals & mining, chemicals, pharmaceuticals, and gems & jewellery were strongly positive. Leather & leather goods sector was largely positive, barring a few respondents who reported a subdued outing,” notes the report titled Sanguinity sustains.

A similar trend was observed in the services sector, with segments such as Information Technology (IT) and IT-enabled services, trading, logistics, real estate and construction, all reporting an improvement in the business sentiment. The only exception being media and power & utilities sectors which reported a “subdued run”.

The CriSidEx index is based on a survey that covers businesses with a turnover of less than ~250 million, with adequate representation across companies, partnerships, and proprietorships.

The survey reveals firms are even more optimistic about their business prospects in the coming quarter — July to September 2018. “Sixty per cent of the respondents from the manufacturing sector and 53 per cent from the services sector foresee a continuation of the positive momentum,” notes the report.

Among the firms surveyed, the report finds firms with 10-25 employees, and those with more than 25 employees were the most optimistic about the business environment.

On the order book size, the report notes that 45 per cent of MSEs reported an increase in April-June 2018, compared to 38 per cent in January-March. Within the manufacturing sector, gems and jewellery, chemicals, leather and leather goods reported an increase in the order book. In pharmaceuticals and auto component segments, a smaller proportion of firms reported an increase in order book size in Q1FY19, compared to Q4FY18. In the services sector, all barring power and utilities, witnessed an increase in the order book size in Q1FY19.