Indian companies confident of buoyant demandStaff Writer | November 15, 2016
The Markit Business Outlook survey for October highlights improving confidence among private sector firms in India.
Asia Markit India Business Outlook
Manufacturers are slightly more optimistic than their services counterparts, with the respective net balances at +29% and +25% respectively.
Supported by improved sentiment towards the outlook for new work, businesses foresee a pick-up in output growth. The net balance for activity is up from +15% in June to +25% in October, the highest mark since February 2015 and one that outstrips both the global (+19%) and BRIC (+23%) averages.
Greater degrees of confidence are noted among goods producers and service providers alike.
Survey respondents have listed strong underlying demand, higher government investment, better marketing strategies, export opportunities, infrastructure developments and new product launches as the main factors likely to underpin output growth in 12 months’ time.
That said, firms have reported fierce competition, volatility in oil prices, clients’ defaults, gold price fluctuation, challenging global economic conditions and higher tax rates as threats to the outlook.
Reflective of improved sentiment towards new business, revenues and profits are expected to increase at stronger rates over the course of the next year. ■