Industry expects biz sentiment to improve in 6 months

Corporates are optimistic about improvement in business conditions in the next six months despite economic slowdown and global uncertainties, according to Assocham Bizcon survey.

"The industry seems to feel that the slowdown has bottomed out. This is despite the fact that as of now, domestic demand remains weak and global markets stay uncertain," it said.

The chamber said it surveyed 300 chief executive officers engaged in different sectors such as manufacturing, finance, real estates and IT in the month of September.

The survey said though the situation on the ground did not change in the last six months, prospects have improved for the next two quarters.

Majority of respondents said they expect overall economic situation would

be better and their performance will also improve in the coming six months, it added.

The study said the good news is that the industry is optimistic.

It expects the overall economy as well as their individual situations to be much better in the short to medium-term horizon, it added.

The chamber said the survey was conducted amid the prevailing economic slowdown and the decelerating industrial growth.

Therefore, the industry is concerned about factors like high-cost of credit, poor infrastructure and certain regulatory issues delaying the project take-offs, thus, affecting the overall performance, Assocham President Rajkumar N Dhoot said.

In September, inflation rose to 7.81 per cent, a 10-month high from 7.55 per cent in the previous month.

During April-August 2012, industrial output was 0.4 per cent, down from 5.6 per cent in the same period in 2011-12.