Costs remain high amidst dormant sales, profits: IIM-A business expectation survey

By A Representative
The latest round of Business Inflation Expectations Survey (BIES) for April 2019, released by the Indian Institute of Management-Ahmedabad (IIM-A), based on the responses of over 1600 companies, has revealed that around 50% of the firms in April 2019 reported increase in costs has been more than 3% (sharply down from 57% reported in March 2019) during the last one year, while the proportion of firms perceiving significant cost increase (more than 6%) in April 2019 has also come down sharply to 25% as compared to 32% in March 2019.
The survey further finds that in April 2019, nearly three fifths of the firms in the sample reported that sales are ‘somewhat or much less than normal’, with this proportion remaining similar during the January-April 2019 period. Further, the proportion of firms in the sample reporting ‘normal or greater than normal’ profit margins has marginally improved to 36% in April 2019 from 33% in March 2019, though overall, the profit margin scenario has remained unchanged in April 2019.
An IIM-A note on the survey says, “One year ahead business inflation expectation has marginally declined to 3.48% in April 2019 from 3.68% reported in March 2019.” It adds, “Uncertainty of business inflation expectation in April 2019 has also declined marginally. However, it has remained elevated at 2.26% (2.34% observed in March 2019).”
The note further says, “Respondents were also asked to project one year ahead CPI headline inflation through an additional question using a probability distribution. Survey results indicate that businesses in April 2019 expect one year ahead CPI headline inflation to be 3.85%, sharply up from 3.30% projected in February 2019, with a relatively low standard deviation of around 1.00%.”

Beyond the 'silent relocation' narrative in Bangladesh's Chittagong Hill Tracts

By Dr. Mohammad Asaduzzaman* In recent years, a narrative has emerged from the rugged and forested terrain of the Chittagong Hill Tracts (CHT), portraying the region as the site of a “silent relocation” — a mass forced migration of Bangladesh’s non-Muslim ethnic communities into neighboring India and Myanmar.

The farmer's burden: How oil, war, and climate are rewriting the price of food

By Vikas Meshram The scorching flames of the Middle East conflict are now slowly reaching the kitchens of ordinary people. The true price of this war is paid in daily markets, vegetable shops, and in the shattered minds of farmers. Expensive crude oil, skyrocketing fertilizer prices, and rising agricultural costs are together creating the conditions for global food inflation — and this crisis is directly tied to what people eat and drink every day.

Ram, Bam and Bengal: Memories of a Left turn toward the Right

By Rajiv Shah The BJP ’s massive electoral win in West Bengal is being interpreted across political persuasions — except, of course, by the BJP itself — as the result of the alleged deletion of around 90 lakh voters from the electoral rolls during the controversial intensive revision process. This may well be true, given my own experience in Gujarat regarding the shoddy manner in which electoral revisions have often been conducted. In West Bengal, there also appeared to be a political angle to the exercise. But I am not interested in discussing that here, as enough has already appeared in the media on the subject.

Counterview

Search This Blog