The Business Optimism Index has hit its lowest level since October 2004 as "there is a strong bearish trend in the economy," Dun & Bradstreet which did computing said in Mumbai on Thursday.
D&B Chief Operating Officer Kaushal Sampat said the firm, which started computing this index eight years ago, surveyed 350 small and big companies representing different sectors before arriving at the index figure.
According to Sampat, "there is a strong bearish trend in the economy and the decline in confidence was first noticed in the previous quarter."
The index, which reflects the perception of the business community for the quarter July to September, recorded a decrease of 11.2 per cent to 136.5 from 153.7 in the previous quarter. On a year to year basis, the index recorded a decrease of 18.4 per cent.
While the composite index has hit the lowest level since October 2004, other parameters like expectations in terms of sales, profits and new orders are still weaker and the indices tracking these three parameters separately have hit the lowest level in the last six years.
It is one of the few surveys which try to gauge the industry mood about the prospects for the next quarter. Other studies are that that of NCEAR, ABN Amro, FICCI among others.
