Business sentiment in July-September 2019

The Survey 8 findings need to be viewed in the context of macroeconomic factors such as production cuts by automobile original equipment manufacturers (OEMs) impacting auto component utilisation, decline in both volume and realisation in commodity-linked sectors such as steel, and a slowdown in consumption impacting gems & jewellery, hotels, etc.

Sectors that saw a positive trend

• Among manufacturers, 27% reported a good SQ8, lower than 37% in the same quarter a year ago (S4) but the same as 27% in the previous quarter (S7). However, positive sentiment in SQ8 was the lowest in five quarters
  
  • In SQ8, pharmaceuticals, textiles and chemicals had the highest share of respondents who reported a good quarter
    
  • On-year basis (S4 to S8), pharmaceuticals, textiles and food products reported an increase in the share of respondents with positive sentiment
    
• Among service providers, 19% reported a good SQ8, lower than 38% in the same quarter a year ago (SQ4) and also lower than 28% in the previous quarter (S7). However, here too, positive sentiment in SQ8 was the lowest in five quarters
  
  • In SQ8, diversified consumer services, commercial services & supplies and IT/ITeS segments had the highest share of respondents who reported a good quarter
    
  • On-year basis (S4 to S8), only the diversified consumer services segment reported a marginally higher increase in the share of respondents with positive sentiment
    

Sectors that saw a subdued trend

• Among manufacturers
  
  • In SQ8, metal & mining, auto-components, and engineering & capital goods had a higher share of respondents reporting a subdued quarter
    
  • On-year basis (S4 to S8), auto-components, metal & mining, and engineering & capital goods witnessed a sharper decline in the share of respondents with positive sentiment
    
• Among service providers
  
  • In SQ8, power & utilities, travel & hotels, and human resources segments had a higher share of respondents reporting a subdued quarter
    
  • On-year basis (S4 to S8), healthcare providers & services, power & utilities, and travel & hotels witnessed a sharper decline in the share of respondents with positive sentiment