MNI INDIA BUSINESS SENTIMENT EMBARGOED UNTIL 9.45 A.M. NEW DELHI TIME, 20 February 2014 MNI India Business Indicator Declined to 58.2 in February from 63.4 in January Inventories Hit Record High

1. Insight and data for better decisions
MNI India Business Indicator Declined to 58.2 in
February from 63.4 in January
Inventories Hit Record High
The MNI India Business Indicator declined to 58.2 in
February from 63.4 in January, leaving confidence at
the lowest level since December.
The worsening was led by a fall in business conditions
among service sector companies, while conditions
remained broadly stable for both manufacturing and
construction sector companies.
In spite of the latest fall, sentiment stands above the
level seen in February 2013, suggesting that the
worst is over for the Indian economy.
Both New Orders and Production fell in February
while Inventories of Finished Goods hit the highest
level on record, an indication that demand still
remains weak.
“Still, while conditions have improved compared
with last year, the business environment remains
challenging. Inventories have been building up
significantly over the past three months. While some
of this may be seasonal, in hand with low Order
Backlogs, it reflects a weakness in overall demand.”
MNI India Business Indicator
80
75
70
65
60
55
50
45
Commenting on the latest survey, Chief Economist for
MNI Indicators Philip Uglow said, “Business
sentiment slipped back in February, although it’s too
early to say that this is the start of a sustained fall.
Sentiment has remained broadly steady over the past
six months and is above levels seen a year ago. The
latest drop doesn’t alter this trend.”
Future Expectations
For more information, please contact:
Customer Support
support@mni-indicators.com
+44 (0)20 7862 7444
Copyright© 2014 MNI Indicators | Deutsche Börse Group.
Reproduction or retransmission in whole or in part is prohibited except by permission. All rights reserved.
Jan-14
Feb-14
Dec-13
Oct-13
Current Conditions
Nov-13
Sep-13
Aug-13
Jul-13
Jun-13
Apr-13
May-13
Feb-13
Mar-13
Jan-13
Dec-12
40
Nov-12
Higher input prices continued to hurt companies,
with the Input Price Indicator rising to 73.0 from
69.8 in January. In spite of the elevated level of Input
Prices, Prices Received by companies eased to the
lowest since October.

2. MNI Indicators - February 2014
Overview
Highest
Since
Lowest
Since
58.2
-
Dec-13
59.8
-5.2
-8.2%
69.5
-
Oct-13
70.9
-2.5
-3.5%
Feb -14
3-Month
Average
Monthly
Change
Monthly %
Change
Dec -13
Jan -14
Current Conditions
57.8
63.4
Future Expectations
71.1
72.0
Current Conditions
59.7
64.4
62.0
-
Dec-13
62.0
-2.4
-3.7%
Future Expectations
66.2
71.6
69.7
-
Dec-13
69.2
-1.9
-2.7%
Current Conditions
60.3
63.6
62.3
-
Dec-13
62.1
-1.3
-2.0%
Future Expectations
65.4
65.5
67.2
Nov-13
-
66.0
1.7
2.6%
MNI India Business Indicator
Production
New Orders
Export Orders
Current Conditions
60.5
61.4
59.8
-
Nov-13
60.6
-1.6
-2.6%
Future Expectations
67.9
62.9
68.2
Sep-13
-
66.3
5.3
8.4%
Current Conditions
51.3
58.0
56.1
-
Dec-13
55.1
-1.9
-3.3%
Future Expectations
57.5
64.3
60.0
-
Dec-13
60.6
-4.3
-6.7%
Current Conditions
41.7
35.6
39.8
Dec-13
-
39.0
4.2
11.8%
Future Expectations
43.7
35.2
40.1
Dec-13
-
39.7
4.9
13.9%
Productive Capacity
Order Backlogs
Employment
Current Conditions
50.0
51.8
50.8
-
Dec-13
50.9
-1.0
-1.9%
Future Expectations
52.2
53.4
57.5
series high
-
54.4
4.1
7.7%
Current Conditions
53.1
62.1
64.9
series high
-
60.0
2.8
4.5%
Future Expectations
54.6
59.5
53.5
-
Nov-13
55.9
-6.0
-10.1%
Inventories
Input Prices
Current Conditions
71.8
69.8
73.0
Nov-13
-
71.5
3.2
4.6%
Future Expectations
66.4
69.9
72.0
Nov-13
-
69.4
2.1
3.0%
Prices Received
Current Conditions
58.0
60.6
56.2
-
Oct-13
58.3
-4.4
-7.3%
Future Expectations
56.0
60.9
61.2
Nov-13
-
59.4
0.3
0.5%
Current Conditions
65.2
68.2
69.3
Nov-13
-
67.6
1.1
1.6%
Future Expectations
71.3
71.5
77.2
Sep-13
-
73.3
5.7
8.0%
Current Conditions
69.2
60.5
67.3
Dec-13
-
65.7
6.8
11.2%
Future Expectations
56.8
57.9
60.7
Nov-13
-
58.5
2.8
4.8%
Current Conditions
39.4
44.3
44.2
-
Dec-13
42.6
-0.1
-0.2%
Future Expectations
43.2
43.6
45.2
Jul-13
-
44.0
1.6
3.7%
Current Conditions
54.2
54.4
55.6
Sep-13
-
54.7
1.2
2.2%
Future Expectations
54.2
51.7
56.2
May-13
-
54.0
4.5
8.7%
Financial Position
Interest Rates Paid
Effect of Rupee Exchange Rate
Supplier Delivery Times
Availability of Credit
Current Conditions
52.6
56.8
54.9
-
Dec-13
54.8
-1.9
-3.3%
Future Expectations
58.8
54.1
54.8
Dec-13
-
55.9
0.7
1.3%
2