Business optimism at record low: Report

New Delhi, April 20

Business optimism for the ongoing April-June quarter has slumped to its record low level, reflecting the plunge in business sentiment owing to the heightened uncertainty around the impact of Covid-19, according to a report.

The Dun & Bradstreet Composite Business Optimism Index stood at 49.40 per cent for Q2 2020, a record low and worse than that during the 2009 financial crisis. The index registered a decrease of 37 per cent as compared to the year-ago period.

“The near halt in almost all non-essential activities in the industrial and services sectors due to the lockdown has led to a fall in the optimism levels for net sales and new orders to the lowest level in 18 years,” Dun & Bradstreet Chief Economist Arun Singh said.

The survey said the optimism for net profits stood at 48 per cent — a decrease of 21 percentage points as compared to same period last year, while optimism for new orders stood at 24 per cent — a decrease of 39 percentage points as compared to April-June 2019.

Singh further noted that the impact of Covid-19 started as a supply shock but has also triggered strong demand shocks and has led to the collapse of confidence levels. — PTI

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Dun & Bradstreet Composite Business Optimism Index stood at 49.40% for Q2, worse than that during the 2009 financial crisis

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