Business sentiment for October-December 2021

Share of respondents seeing a good SQ17 jumps to 33% for manufacturing, 37% for services

S17 findings need to be viewed in the context of falling omicron cases. Economic activity and manufacturing activity did not see much of a downside in SQ17 due to the spike in omicron cases. However, it remains a key monitorable and contingencies such as escalation of the Russia-Ukraine conflict and the ever-present threat of any new Covid-19 variants can dampen progress in coming quarters.

Sectors with a positive trend

• Among manufacturers, 33% reported a good SQ17, marginally higher than 31% in SQ16 and in the same quarter a year ago (SQ13)
  
  • In SQ17, the share of respondents reporting a good quarter was the highest in pharmaceuticals and chemicals
    
  • On-year (SQ13 vis-à-vis SQ17), chemicals and engineering & capital goods sectors reported the sharpest rise in share of respondents with positive sentiment
    
• Among service providers, 37% reported a good SQ17, lower than 39% in SQ16, and higher than 28% in SQ13
  
  • In SQ17, the share of respondents who reported a good quarter was the highest in healthcare providers & services and traders
  • On-year (SQ13 vis-à-vis SQ17), human resources and healthcare providers & services reported the sharpest rise in the share of respondents with positive sentiment