Business Confidence Index rose by about 22 percent in January 2014: NCAER

In its latest survey National Council of Applied Economic Research (NCAER) has reported that the Business Confidence Index (BCI) rose by about 21.8 percent in January 2014 to 122.3 points from 100.4 in July-September quarter survey. NCAER said that higher exports, enhanced farm produce and moderation in inflation improved business confidence during the October-December period. The survey noted that there was a continued slide in business sentiment through 2012-13 on concerns of slower growth coupled with high inflation. The survey revealed that manufacturing sector firms were more optimistic than services sector during the quarter, while the highest growth was recorded in intermediate goods sector followed by consumer goods non-durables. The survey further stated that both input cost and ex-factory prices are likely to increase in the next six months and within input cost, only cost of electricity per unit of output is likely to moderate. It also said employment of all types of labour is also likely to improve in the short run along with wage rates.    The survey conducted during Assembly elections in five states has also taken into account influence of the election process on business sentiments besides business and financial data and said that Political Confidence Index (PCI) -- a measure of related business sector perceptions -- increased for the successive quarter, showing an improvement of 9.8 percent to 112.9 points.