FICCI confidence survey shows signs of recovery

There is cautious optimism even in the face of problems with the results of a Ficci Business Confidence Survey for the fourth quarter (Q4) of the previous financial year (FY) indicating that the economy has bottomed out and begun to recover. The Overall Business Confidence Index has jumped up to 64.1 from 44 in the last survey,reminiscent of the high confidence level prevalent during the first half of the 2007-08 fiscal.

Of the 300 companies surveyed from over 20 different industries with varying turnovers,57 per cent of the participants said that the overall economic condition is moderately to substantially better vis-à-vis the last six months,up from 9 per cent of the companies reporting likewise in the last round. The corresponding number of respondents who felt overall economic conditions have deteriorated has also declined from 64 per cent in the previous survey to 18 per cent. In terms of industry performance in the last six months,46 per cent indicated an improvement in performance.