The Indian economy is in fine fettle despite the rising crude oil prices, and business confidence has risen compared with the previous quarter, according to the Dun and Bradstreet Business Expectation Survey for July-September (Q2) 2005, released on Wednesday.
At 174, the business optimism index for Q2 2005 is 5.6 per cent higher than the previous quarter's 162.5.
Inventory, employees and net profits are the three optimism indices that have risen while net sales, selling prices and new orders have declined compared with the previous quarter.
Of the 300 corporate respondents in Mumbai and Delhi, 87 per cent expect sales volumes to surge in this quarter, and only 3 per cent expect a decline.
The resultant optimism index for volume of sales stands at 84 per cent compared with 85 per cent in the previous quarter.
The optimism index for net profits for Q2 2005 is at 86 per cent, an increase of three percentage points over the previous quarter. Of the respondents, 89 per cent anticipate increase in profitability and 3 per cent expect a decline.
