Business sentiment in October-December 2019

Survey 9 shows a positive sentiment for sectors with seasonally good quarter like travel, food products, and capital goods.

Besides, with automobile OEMs having corrected inventory levels in Q2 & Q3 with dealers and now migrating to BS VI vehicle production, the auto-component production in value terms is seeing a sequential increase. However, commodity-related sectors such as steel, and a slowdown in consumption remain pain points.

Sectors that saw a positive trend

• Among manufacturers, 27% reported a good SQ9, the same as in SQ7 and SQ8. This was lower than 42% in the same quarter a year ago (SQ5) and the lowest in five quarters
  
  • In SQ9, chemicals, pharmaceuticals and food products hadthe highest share of respondents reporting a good quarter
    
  • On-year basis (SQ5 to SQ9), only food products reported an increase in the share of respondents with positive sentiment
    
• Among service providers, 25% reported a good SQ9, lower than 41% in the same quarter a year ago (SQ5), but higher than 19% in SQ8
  
  • In SQ9, healthcare providers, professional services and travel & hotels had the highest share of respondents reporting a good quarter
    
  • On-year basis (SQ5 to SQ9), healthcare providers, travel & hotels, and IT/ITeS segments reported an increase in the share of respondents with positive sentiment
    

Sectors that saw a subdued trend

• Among manufacturers
  
  • In SQ9, gems & jewellery, and leather & leather goods had a higher share of respondents reporting a subdued quarter
    
  • On-year basis (SQ5 to SQ9), gems & jewellery, pharmaceuticals and leather & leather goods witnessed a sharper decline in the share of respondents with positive sentiment
    
• Among service providers
  
  • In SQ9, construction & real estate, diversified consumerservices and logistics segments had a higher share ofrespondents reporting a subdued quarter
    
  • On-year basis (SQ5 to SQ9), logistics, traders and construction & real estate witnessed greater decline in the share of respondents with positive sentiment