Biz Con­fi­dence In­dex Slips on Note Ban

The Economic Times - - Economy: Macro, Micro & More - Press Trust of In­dia

Mum­bai: Over­all Busi­ness Con­fi­dence In­dex (OBCI) slipped to a four quar­ter low of 58.2 from 67.3 in the last round, a Ficci re­port said on Tues­day.

The OBCI slipped to a four quar­ter low of 58.2 from 67.3 in the last round, which was largely on ac­count of the weak­ness that has gripped the per­for­mance of cor­po­rate In­dia on ac­count of de­mon­eti­sa­tion and their as­sess­ment of the cur­rent state of econ­omy, Ficci's lat­est busi­ness con­fi­dence sur­vey, the OBCI, said. The sur­vey was con­ducted dur­ing the months of De­cem­ber 2016 and Jan­uary 2017 to cap­ture their as­sess­ment of the cur­rent sit­u­a­tion as well as gauge ex­pec­ta­tions re­gard­ing per­for­mance for the pe­riod Jan­uary 2017 to June 2017. The sur­vey drew re­sponses from about 207 com­pa­nies be­long­ing to a wide ar­ray of sec­tors.

While a ma­jor­ity of the re­spon­dents said that de­mon­eti­sa­tion is a pos­i­tive step to­wards curb­ing black money and cor­rup­tion from the econ­omy, the move did have an im­pact on their sales. The liq­uid­ity short­fall af­fected day-to-day busi­ness op­er­a­tions, while re­al­i­sa­tions and pay­ments were im­pacted.

The re­spon­dents be­long­ing to sec­tors such as au­to­mo­bile and an­cil­lary in­dus­tries, farm based prod­ucts, con­struc­tion, min­ing and ce­ment re­ported a di­rect im­pact on their sec­tor's per­for­mance.

Fur­ther, while some re­spon­dents in­di­cated a time frame of three months for things to nor­malise, oth­ers felt that it could even take about a year.

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