Skip to main content

Insignificant increase in costs; sales, profits improve: IIM-A surveys Indian business

By Our Representative 

In its fresh Business Inflation Expectations Survey (BIES), an Indian Institute of Management-Ahmedabad (IIM-A) report has said that cost perceptions data in October 2023 “does not indicate any significant increase in cost pressures.”
BIES claims 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. A monthly survey, it asks questions about year-ahead cost expectations and the factors influencing price changes, such as profit, sales levels, etc.
Calling the survey unique 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, BIES report says, “One major advantage of BIES is that one can get a probabilistic assessment of inflation expectations and thus get a measure of uncertainty. It also provides an indirect assessment of overall demand condition of the economy.”
Based on results are based on the responses of around 1,200 companies, it adds, “Results of this Survey are, therefore, useful in understanding the inflation expectations of businesses and complement other macro data required for policy making.”
“The percentage of firms perceiving significant cost increase (over 6%) has declined from 32% in September 2023 to 29% in October 2023. Around one-third of the firms is reporting moderate cost increase (3.1% to 6.0%)”, the survey says.
It notes, “About 23% of the firms are reporting ‘somewhat greater than normal’ sales in October 2023 – up significantly from 17% reported in September 2023”, adding, “Almost 50% of the firms are reporting ‘normal’ or greater sales in October 2023 from 45% in September 2023.”
At the same time, it says, “Around 44% of the firms in October 2023 are reporting profit margins to be ‘about normal’ or greater, as compared to 36% reported in September 2023, adding, “Overall, the profit margins expectations have improved significantly.”
According to the survey, “One year ahead business inflation expectation, as estimated from the mean of individual probability distribution of unit cost increase, has again increased marginally to 4.44% in October 2023, from 4.39% reported in September 2023. Average inflation expectation of the firms remained anchored around 4.3% for the past six consecutive months.”
“The uncertainty of business inflation expectations in October 2023, as captured by the square root of the average variance of the individual probability distribution of unit cost increase, has declined to 1.9% from 2.1% reported in September 2023”, the survey states. 
“Businesses in October 2023 expect one year ahead CPI headline inflation to be 4.73%, down by 27 basis points from 5.00% reported in August 2023”, it adds.

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.