Business Confidence Index Shoots Up By 41 Per Cent During July-September Quarter: NCAER

In a positive development for the economy, the business sentiment in the nation has shot up by robust 41 per cent during the July-September quarter from a record low in the preceding quarter which had witnessed unprecedented lockdown and numerous restrictions bring the economic activity to a grinding halt, reports Economic Times.

The data was uncovered by the Business Expectation Survey conducted by the National Council for Applied Economic Research (NCAER). It's Business Confidence Index (BCI) rose to 65.5 in the second quarter after recording a massive drop to 46.4 in the first quarter.

Meanwhile, it should be noted that the BCI in the same quarter last year was 36.5 per cent higher than this. Also, even at the end of the FY20's final quarter, the BCI stood at a higher 77.3 mark.

The said survey carried out by NCAER covers 600 companies across varied sectors, geographies and sizes and focuses on four aspects to determine the BCI. These include economic conditions, financial position, investment climate and capacity utilisation.

The latest round of the survey saw sentiments improve in three of the four aspects, with only the sentiment concerning investment climate witnessing a dip.