MNI India Business Indicator October 2013


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MNI India Business Indicator October 2013

  1. 1. London, 24 October 2013 MNI INDIA BUSINESS SENTIMENT EMBARGOED UNTIL 9.45 A.M. NEW DELHI TIME, 24 OCTOBER 2013 MNI India Business Indicator Broadly Stable at 59.8 in October Media Release Production takes a hit The MNI India Business Indicator remained broadly stable in October at 59.8 compared with 59.4 in September, although expectations for the next three months fell, a possible seasonal effect due to the festival season approaching an end. Apart from overall business sentiment, all other current conditions indicators fell between September and October. Fourteen out of the 15 indicators measuring expectations for the next three months also declined. Both Production and New Orders suffered significant declines in October having risen strongly in the previous month. Manufacturing firms showed a sharp decline in both indicators. Companies reported that the depreciation in the rupee was hurting business even more than last month, with the indicator measuring the impact of the exchange rate hitting the lowest level since the series began in November 2012. Inflationary pressures eased in October with both Input Prices and Prices Received posting significant declines. Commenting on the latest survey, MNI Indicators Chief Economist Philip Uglow said, “While overall confidence remained stable, nearly every other indicator in the report this month weakened.” “The business environment is clearly challenging, with a record number of companies reporting that the weak rupee was hurting business in October and that costs of raw materials remained high. Still, the worst may now be over for businesses with most indicators having recovered from a record low in April.” - ENDS -
  2. 2. Page 2 For further information, please contact: Naomi Kim, Public Relations +1 212 669 6459 Arno Castanet, Marketing +44 (0)20 7862 7434 Editorial Content: Philip Uglow, Chief Economist, MNI Indicators Media Release Notes to Editors Please source all information to MNI Indicators. MNI India Business Sentiment is a monthly poll of Indian business executives at companies listed on BSE (formerly known as the Bombay Stock Exchange). Companies are a mix of manufacturing, service, construction and agricultural firms. Respondents are asked their opinion on whether a particular business activity has increased, decreased or remained the same compared with the previous month as well as their expectations for three months ahead, e.g. is Production higher/same/lower compared with a month ago? Diffusion indicators are then calculated by adding the percentage share of positive responses to half the percentage of those respondents reporting no change. An indicator reading above 50 shows expansion, below 50 indicates contraction and a result of 50 means no change. Data is collected via telephone interviews. Around 200 companies are surveyed each month. About MNI Indicators MNI Indicators, part of Deutsche Börse Group, offers unique macro-economic data and insight to businesses and the investment community. We produce data and intelligence that is unbiased, pertinent and responsive. Our data moves markets. For more information, visit our website at MNI Indicators | Deutsche Börse Group