Skip to main content

Business back to normal? IIM-A survey says, sales expectations have sharply improved

By Our Representative 

The Indian Institute of Management’s Business Inflation Expectations Survey (BIES), which polls a panel of business leaders to find out their perception of slack in economy, including their inflation expectations, year-ahead cost expectations and the factors influencing price changes, such as profit and sales levels, etc., has said that the cost perceptions data indicates signs of moderation in price pressures.
Carried out for September, the survey says, the cost pressure of the reporting firms has shifted from “very significant increase (over 6%) to moderate increase (3.1% to 6%).” It adds, “The percentage of firms perceiving over 10% cost increase y-o-y has declined. Over 21% of the firms in September 2022 round of the survey perceive that costs have increased very significantly (over 10%) – down from 26% recorded in August 2022.”
Claiming to be a unique survey, in that it goes straight to businesses -- the price setters -- rather than to consumers or households, to understand their expectations of the price level changes, responses from around 1,000 companies also suggest, firms’ sales expectations have sharply improved.
“Percentage of firms reporting ‘somewhat less than normal’ sales has declined to 24% in September 2022 from 32% reported in August 2022”, it says, adding, “Around 27% of the firms in September 2022 report that sales are ‘about normal’, sharply up from 19% reported in August 2022.” “Normal" means as compared to the average level obtained in the preceding 3 years, excluding the Covid-19 period.
The survey, however, notes that profit margins expectations have only improved marginally. “Over 34% of the participating firms in the survey perceive profit margins are ‘somewhat less than normal’ – down from 36% reported in the earlier round of the survey”, it says, adding, it is a probabilistic assessment with a measure of uncertainty, even as providing an indirect assessment of overall demand condition.
The survey further says, One year ahead business inflation expectations in September 2022 have declined by to 4.74% from 5.09% reported in August 2022. “The uncertainty of business inflation expectations in September 2022, as captured by the square root of the average variance of the individual probability distribution of unit cost increase, has sharply increased to 2.11%”, it adds.

Comments

TRENDING

Importance of Bangladesh for India amidst 'growing might' of China in South Asia

By Samara Ashrat*  The basic key factor behind the geopolitical importance of Bangladesh is its geographical location. The country shares land borders with Myanmar and India. Due to its geographical position, Bangladesh is a natural link between South Asia and Southeast Asia.  The country is also a vital geopolitical ally to India, in that it has the potential to facilitate greater integration between Northeast India and Mainland India. Not only that, due to its open access to the Bay of Bengal, Bangladesh has become significant to both China and the US.

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.

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".

'BBC film shows only tip of iceberg': Sanjiv Bhatt's daughter speaks at top US press club

By Our Representative   The United States' premier journalists' organisation, the National Press Club (NPC), has come down heavily on Prime Minister Narendra Modi for recent "attacks on journalists in India." Speaking at the screening of an episode of the BBC documentary “India: The Modi Question,” banned in India, in the club premises, NPC President Eileen O’Reilly said, “Since Modi came to power we have watched with frustration and disappointment as his regime has suppressed the rights of its citizens to a free and independent news media."

Regional political dynamics 'leading to' institutional violence in SAARC University

By Sandeep Pandey*  South Asian University is a university set up in Delhi by member countries of South Asian Association for Regional Cooperation – India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, Afghanistan and Maldives – which is open to students from all these countries. However, as SAARC is receiving little attention these days because of regional political dynamics, it appears as if SAU has lost significance too. Because of the hiatus in peace process between India and Pakistan, the Board of Governors of this University is dysfunctional.

Natural farming: Hamirpur leads the way to 'huge improvement' in nutrition, livelihood

By Bharat Dogra*  Santosh is a dedicated farmer who along with his wife Chunni Devi worked very hard in recent months to convert a small patch of unproductive land into a lush green, multi-layer vegetable garden. This has ensured year-round supply of organically grown vegetables to his family as well as fetched several thousand rupees in cash sales.

Over-stressed? As Naveen Patnaik turns frail, Odisha 'moves closer' to leadership crisis

By Sudhansu R Das  Not a single leader in Odisha is visible in the horizon who can replace Chief Minister Naveen Patnaik. He has ruled Odisha for nearly two and half decades. His father, Biju Patnaik, had built Odisha; he was a daring pilot who saved the life of Indonesia’s Prime Minister Sjahrir and President Sukarno when the Dutch army blocked their exit.

Hillary Clinton, Al Gore, Ban Ki-moon, others ask Bangladesh PM to 'protect' Yunus

Counterview Desk  A campaign has been launched to support Bangladesh-based economist, micro-finance guru and Nobel laureate Muhammad Yunus, seeking signatures from citizens across the globe in order to “protect” his work, life and safety.

Electricity sharing opens up new window for India’s eastern neighbourhood engagement

By Sufian Asif* Today, challenges like climate change, pandemics, energy reliance, economic crisis, and many more are concerning us. No nation can overcome these obstacles without the assistance and collaboration of other nations. Most importantly, many of these problems have international repercussions. South Asia is facing much more difficulty when compared to other regions. In South Asia, we have some regional organizations, but they are ineffective.

'Vulgar display of wealth': Govt of India using G20 presidency for political, electoral gains

Counterview Desk  Seeking endorsement for a public statement on India's G20 Presidency, several people’s movements, trade unions and other civil society groups have come together to say that not only will G20 and its priorities “will worsen economic, social and climate crisis”, already, India’s presidency is being used “for vulgar display of pomp & for electoral gains.”