Business sentiment in January-March 2019

The Survey 6 findings need to be viewed in the context of factors such as slowdown in auto sales leading to inventory pile-up and production cuts by automobile industry, slower tendering/awarding ahead of elections affecting engineering, and regulations impacting logistics.

Sectors that saw a positive trend

• Sentiment was positive for both manufacturing and services sectors
  
• Among manufacturers, 42% reported a good SQ6, indicating a consistent run in the latest 5 surveys
  
  • In SQ6, leather & leather goods, chemicals and engineering & capital goods had the highest share of respondents who reported a good quarter
    
  • On-year basis (S2 to S6), leather & leather goods, chemicalsand pharmaceuticals reported higher increase in positive respondents
    
• Among service providers, 39% reported a good SQ6, indicating significant improvement over the five quarters, from 29% in SQ2
  
  • In latest quarter SQ6, IT/ITeS, professional services and human resources segments had the highest share respondents who reported a good quarter
    
  • On-year basis, IT/ITeS and human resources reported higher increase in positive respondents