Business Optimism In Q4 Of 2021 At Near Eight-Year High In India: Report

The Dun & Bradstreet Composite Business Optimism Index (BOI) shows that business optimism in the fourth quarter of 2021 has been the highest since the second quarter of 2014, Economic Times reports.

The BOI index has shot up by 27.4 per cent in the ongoing quarter as compared to the preceding one and stands at 94.6 currently.

In fact, growth has been witnessed in five out of the six indices in relation to Q3.

Apparently, the highest optimism is seen in the construction sector presently due to encouraging parameters like inventory levels, level of selling price and also with respect to the hiring of employees.

The survey highlighted that around 79 per cent of the respondents expect the volume of sales to increase in Q4 2021, as compared to 67 per cent the quarter before. Similarly, 62 per cent of the respondents expect an increase in net profits in Q4 2021, compared to 48 per cent in the quarter before.

“The consumption boost to India Inc., from easing lockdown restrictions, pent-up and festive demand, arrears payment of dearness allowances along with improving consumer confidence levels, are quite evident from the optimism for new orders which has climbed to the highest level since Q3 2014,” Arun Singh, Global Chief Economist at Dun & Bradstreet was quoted in the report.

Hence, GDP growth in the fourth quarter is also expected to increase given that optimism on the business front is slated to be at an eight-year high as of now.