Business sentiment in October-December 2018

The Survey 5 findings need to be viewed in the context of favourable macroeconomic factors such as festive season, rupee depreciation and decline in oil prices, as well as adverse factors such as the NBFC liquidity crunch.

Sectors that saw a positive trend

• Momentum was positive for both manufacturing and services sectors
• Among service providers, 41% reported a good SQ5, indicating significant improvement over the 30% logged in the corresponding quarter a year ago
  • Power & utilities, professional services & logistics segments had the highest share of respondents who had a good quarter
  • IT/ITeS, construction & real estate, and travel & hotels had lower share of positive respondents in SQ5 compared with SQ4
• Among manufacturers, 42% reported a good SQ5, indicating a consistent run
  • The share of positive respondents was higher compared with SQ4 and SQ1
  • Pharmaceuticals, gems & jewellery, textiles, leather & leather goods had higher share of respondents reporting a good quarter