Skip to main content

Cost perception of India's business executives still presents 'mixed-signal': IIM-A survey

By Our Representative

The Indian Institute of Management-Ahmedabad’s (IIM-A’s) latest Business Inflation Expectations Survey (BIES), which seeks to examine the amount of slack in the economy by polling a panel of business leaders, has said that that “the cost perception” of those surveyed “presents a mixed-signal”, with around one-third of the firms still perceiving “significant cost increase.”
Stating that while expectations on sales have improved, plausibly reflecting improved demand conditions during the festival season, BIES in its 42nd round of survey, a monthly exercise, said, “Firms’ profit margin expectations have steadily moved from ‘much less than normal’ profit to ‘somewhat less than normal’ and ‘about normal’ profit category.”
According to BIES, “The cost perceptions data presents a mixed signal. About one-fourth of the firms in this round of the survey perceive that cost increase has been less than 1% as compared with the same time last year. At the same time, around one-third of the firms still perceive significant (over 6%) cost increase.”
It added, “Around 55% of the firms find that the current cost increase is ‘3.1% and above’ as compared to the same time last year – marginally up from 54% reported in September 2020 . This is primarily driven by the firms indicating moderate cost increase (between 3.1% and 6%).”
The BIES further said, “Expectations on sales have further improved – reflecting improved demand during the festival season. Over 46% of the firms in October 2020 report that sales are ‘much less than normal’ as against 51% firms reporting in September 2020. This proportion is gradually declining from March 2020 .”
At the same time, it added, “Over 40% of firms in the sample in October 2020 report ‘much less than normal’ profit as against 54% in September 2020. Firms’ profit margin expectations have steadily moved from ‘much less than normal’ profit to ‘somewhat less than normal’ and ‘about normal’ profit category.”

Comments

TRENDING

A Hindu alternative to Valentine's Day? 'Shiv-Parvati was first love marriage in Universe'

By Rajiv Shah*   The other day, I was searching on Google a quote on Maha Shivratri which I wanted to send to someone, a confirmed Shiv Bhakt, quite close to me -- with an underlying message to act positively instead of being negative. On top of the search, I chanced upon an article in, imagine!, a Nashik Corporation site which offered me something very unusual. 

WHO move can 'enable' India to detain citizens, restrict freedom, control media

Counterview Desk  In an an open letter to Prime Minister Narendra Modi, with copies to concerned Cabinet ministers, bureaucrats and MPs,  health rights network  People’s Alliance for Public Health (PAPH alias JanSwasthya Morcha), has urged that India should not be a signatory to the World Health Organization ( WHO) Pandemic Agreement and Amendments to the  International Health Regulations (IHR) 2005  to be adopted at the 77th World Health Assembly in Geneva from 27th May to 1st June, 2024.

'Enough evidence': Covid vaccines impacted women's reproductive health

By Deepika*  In 2024, the news outlets have suddenly started reporting about covid vaccine side effects in a very extensive manner. Sadly, the damage is already done.

Can scientists believe in God, yet explore nature 'abandoning' belief?

By Dr TV Sajeev*  In August 2023, India celebrated the successful soft-landing of Chandrayan on the south pole of the moon. That mission too led to some questioning about whether scientists could believe in God. The culture of temple visits and poojas before the launch of rockets with or without payload had been a mocking point for a long while. 

Growing stream of pollution infecting homes, bodies in US, Vietnam

By Erica Cirino*  Louisiana’s “River Parishes,” located along the Mississippi River between New Orleans and Baton Rouge, shoulder some of the worst industry impacts in the United States. As a result, this region has acquired a grim reputation as “ Cancer Alley .” 

'Uncertainty in Iran': Raisi brokered crucial Chabahar Port deal with India

By Pranjal Pandey*  Ebrahim Raisi, the Iranian President, and the country’s foreign minister were tragically found deceased on May 20, 2024, shortly after their helicopter crashed in foggy conditions. In response, Supreme Leader Ayatollah Ali Khamenei swiftly appointed a relatively unknown vice president as the interim leader.

Informal, outdoor workers 'excluded': Govt of India's excessive heat policies

Counterview Desk  Top civil rights network, National Alliance of People's Movements (NAPM), has demanded urgent government action to protect millions of outdoor workers from extreme heat and heatwaves, insisting declaration of heatwaves as climatic disaster.