Apparel, Fashion, Retail

Dun & Bradstreet Q2 Business Optimism Index Higher By 4.2%

The Dun & Bradstreet Composite Business Optimism Index stands at 75.9 percent for the second quarter of 2024, 4.2 percent higher compared to first quarter of 2024 for India.

Four out of six optimism indices have shown improvement with optimism for net profits at an eight-quarter high.

The Index which has been measuring the changing business sentiment of Indian businesses since 2002 is a leading indicator for India’s overall growth.

It has a correlation co-efficient of around 80 percent with the Gross Domestic Product (GDP).

The findings include optimism for increase in net profits, which remains strong in the second quarter of 2024, reaching the highest in eight quarters.

Optimism for level of selling prices has recorded an improvement of 4 percentage points, reaching the highest value in four quarters.

Optimism for inventory levels has improved by 13 percentage points in the second quarter of 2024, compared to its previous quarter.

“The optimism for fresh hiring of employees remains unchanged for three consecutive quarters,” the report said.

Despite dipping by 2 percentage points, optimism for order book expansion remains high in the quarter under review, with 60 percent of respondents expecting an improvement in order books.

“The Indian economy continues its steady performance as economy gains steam gathered in previous quarters,” Arun Singh, Global Chief Economist, Dun & Bradstreet, said.

“Businesses are anticipating continued policy alignment, supporting the higher optimism with index growing by 4.2 percent quarter on quarter for the second quarter of 2024,” he added.

“Businesses benefitted from lower input prices, and sustaining consumer confidence. This reflects in higher optimism for selling prices, inventory levels, and net profit,” Singh stated.

“With a eight quarter high optimism for profitability, businesses seem well placed to augment private capital expenditure due to strong cash flow generation,” he informed.

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