Skip to main content

Costs up, sales down, profits muted: IIM-A surveys 1100 business honchos

By Our Representative 

The Indian Institute of Management-Ahmedabad’s (IIM-A’s) latest Business Inflation Expectations Survey (BIES) has said that about 54% of the firms are “still reporting ‘somewhat less than normal’ or lower sales in March 2024”, up from 52% reported in February 2024, adding, overall the survey of 1,100 business executives suggests that profit margin expectations too have remained “slightly muted.”
BIES, says the survey report, provides 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, even as asking them “questions about year-ahead cost expectations and the factors influencing price changes, such as profit, sales levels, etc.”
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”, the report says, “It provides an indirect assessment of overall demand condition of the economy.”
According to the report, “Results of this Survey are useful in understanding the inflation expectations of businesses and complement other macro data required for policy making.” The survey is carried out every monthly at the Misra Centre for Financial Markets and Economy, IIM-A, by selecting companies “primarily from the manufacturing sector."
According to the report, “The cost perceptions data in March 2024 indicate mild increase in cost pressures. However, the percentage of firms perceiving very significant cost increase (over 10%) in March 2024 has increased to 16%, from around 13% reported in February 2024.”
It adds, “The percentage of firms reporting moderate cost increase (3.1% to 6.0%), on the other hand, has remained around 29% during February-March 2024.”
Coming to the sales, the report states, “The sales expectations scenario during February-March 2024 remained similar. Around 18-19% of the firms are reporting ‘somewhat greater than normal’ sales, and about 54% of the firms are still reporting ‘somewhat less than normal’ or lower sales in March 2024 – marginally up from 52% reported in February 2024.
"Normal" means as compared to the average level obtained in the preceding 3 years, excluding the Covid-19 period.
Further, says the report, “Around 42% of the firms in March 2024 are reporting profit margins to be ‘about normal’ or greater – marginally up from 40% reported in February 2024”, adding, “Overall, the profit margins expectations have remained somewhat muted during January-March 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.

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.

'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.

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 .” 

Desist from academic censorship, stop threatening scholars: Letter to ICMR

Counterview Desk  In a letter to the Indian Council of Medical Research (ICMR) director, the Universal Health Organisation (UHO) which consists of prominent health experts, has insisted that the Government of India’s top medical research agency should lead high quality research on vaccine safety and “desist from academic censorship”.