Skip to main content

High cost pressure on business continues, sale, profit level improve a bit: IIM-A survey

By Our Representative 

The new Business Inflation Expectations Survey (BIES) report, released by the Indian Institute of Management-Ahmedabad (IIM-A) for June, has said that while one year ahead business inflation expectations in June 2021 have declined by 16 basis points to 5.27% from 5.43% reported in May 2021, one year ahead consumer price index (CPI) inflation expectations “have increased sharply to 5.36%, further up from 4.73% reported in April 2021.”
At the same time, says the report, the cost perceptions data indicates “sustained higher cost pressures”, with over 28% of the firms still perceiving that costs have increased very significantly (over 10%), though adding, the severe adverse impact of the second wave of Covid-19 is “gradually waning and sales expectations have moved back to the March 2021 level.”
At the same time, the BIES report, which seek to provide ways to examine the amount of slack in the economy by polling a panel of business leaders about their inflation expectations in the short and medium term, says, profit expectations have somewhat improved. In the June 2021 round the responses were received from of around 1100 companies.
The report says, “The cost perceptions data indicates sustained high cost pressures. Over 53% of the firms in this round of the survey perceive significant (over 6%) cost increase – marginally down from 56% reported in May 2021. Note that about 28% of the firms still perceive that costs have increased very significantly (over 10%).” It adds, “Over 72% of the firms in June 2021 find that the current cost increase is ‘3.1% and above’ as compared to 61% reported in March 2021.”
Pointing out that “severe adverse impact of the second wave of Covid-19 on sales expectations is gradually waning”, the report says, “Over 46% of the firms in June 2021 report that sales are ‘much less than normal’ – further improvement as compared to the sentiment reported in May 2021”. By normal it means “as compared to average level obtained in the preceding three years.
As for the profits, the report says, “Over 50% of the firms in the sample in June 2021 report ‘much less than normal’ profit – sharply down from 60% reported in May 2021”, adding, one can “note that the change in profit expectations is primarily due to the shift of responses from ‘much less than normal’ to ‘somewhat less than normal’ category.”

Comments

TRENDING

India reaches 8th of 10 stage genocide: US Muslim advocacy group raises 'alert'

By Hena Zuberi* India has reached the 8th stage of genocide with the persecution of the Muslim community. Stating this, Professor Greg Stanton, who heads Genocide Watch, declared a Genocide Emergency Alert for India today at Justice For All online briefing.

Mayawati's 'success' depends on how BSP taps new crop of young Amdekarite leaders

By Vidya Bhushan Rawat*  Whatever be the election results in Uttar Pradesh on March 10, it is extremely important to understand: that the Bahujan Samaj Party (BSP) and its leader Mayawati have the potential to rise like a Phoenix any time.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Anti-poor? 'Cumbersome' to link aadhaar, voter ID for people sans internet access

By Prashant Kumar Chaudhary, Ajit Kumar Jaiswal*  At present, technology plays an increasingly crucial part in modelling human existence by offering a variety of solutions to many of the challenges individuals confront in the real world. As a result, every branch of research works to provides means to solve these difficulties precisely and efficiently. The Central government works along the same lines as well.

India's actual Covid death rate about 2500 per million, third highest in world: Study

By Rajiv Shah  There is now well-researched proof, if it can be called that, indicating that the Government of India may have fudged data to show lower Covid death rate. A new paper, published in “Science”, has said that while officially the Government of India’s Covid-related death estimates as of January 1, 2022 – 345 per million population – are one-seventh of the US death rate, the actual analysis of crude death rate in India suggests, this may be a gross underestimation. 

Democratic leaders silently greeting Modi's 'increasingly autocratic' rule: HRW

Counterview Desk The Human Rights Watch (HRW)’s new “World Report 2022: Events of 2021”, claiming to “investigate abuses, expose facts widely, and pressure those with power to respect rights and secure justice”, has identified India as one of the countries where “autocracy is ascendant and democracy on the decline” because of emergence of leaders with autocratic tendencies.

Barbaric, inhuman attack on Odisha villagers to implement JSW project: NGO networks

Counterview Desk  A “solidarity statement" issued by three top civil society networks, Friends of the Earth India (FoE India), Delhi Solidarity Group (DSG) and the National Alliance of People’s Movements (NAPM), has asked the Odisha chief minister to ensure that the “inhumane barbaric attack on the villagers of Dhinkia, Odisha” in order to implement a corporate project.

Gender insensitive? Model Gujarat's cyclone relief package ignores 40,000 fisherwomen

CSJ volunteers talking to fisherwomen By Rajiv Shah  A Centre for Social Justice (CSJ) note on the Gujarat government’s compensation package to the victims of the devastating Tauktae cyclone, which hit the coastal belt of Saurashtra's Amerli, Rajula, Una, and Gir-Somnath districts in May 2021, has said, the relief offered was so terribly inadequate that many of the fisherfolk were not able to fish for the rest of the year.

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Our Representative Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

Haridwar call for genocide direct result of Modi 'tolerating' Islamophobic policies

By Our Representative  A high-level briefing organised in Washington DC, in which as many as 17 human rights and interfaith organizations -- including Amnesty International USA, Genocide Watch and Hindus for Human Rights, apart from several persons in their individual capacity -- participated, has come down heavily on what they called "Prime Minister Narendra Modi’s Islamophobic policies and tolerance of open incitement by Hindu extremists for a genocide of Muslims."