Biz Confidence Index Slips on Note Ban
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.