The MNI India Business Indicator increased by 8.0% to 64.6 in November from 59.8 in October, the highest since the survey started in November 2012.
Thirteen out of the 15 current conditions indicators included in the report increased in November. Employment was the only indicator to decline and Inventories remained unchanged compared with October.
After falling sharply in October, Production and New Orders recovered in November, rising to 65.3 and 62.9 respectively.
The Effect of the Rupee Exchange Rate Indicator rose significantly in November having fallen for four consecutive months as significantly fewer companies reported that the exchange rate was hurting business.
Inflationary pressures increased in November with both Input Prices and Prices Received rising significantly.
For Business Expectations in the next three months, 13 indicators rose compared with the previous month. Only New Orders and Employment declined.
Commenting on the latest survey, MNI Indicators Chief Economist Philip Uglow said, “Business confidence bounced back in November after the seasonal downturn seen in October with companies seeing an improvement in Production and New Orders.”
“While our survey shows that the worst for Indian companies is likely over, the deterioration in the labour component is worrying. A higher proportion of firms reported that they have too many employees, causing the Employment Indicator to fall for the third consecutive month and to below 50 for the first time since the series started,” he added.
