According to the latest NCAER-NSE Business Expectations Survey, economic activity in the second quarter of 2024-25 continued to display dynamism, albeit at a slower pace. Business sentiments slightly moderated in this quarter compared to the previous quarter and the same period last year.
Despite the moderation, the majority of firms remained optimistic about the overall economic conditions and their financial positions in the next six months. The survey also revealed that capacity utilization for most surveyed firms was either at or above optimal levels in Q2.
A significant percentage of firms anticipated an increase in production and domestic sales in the coming six months. The survey also highlighted positive sentiments about expected new orders and exports of final products. Additionally, a considerable number of firms expected no changes in unit costs of raw materials, electricity, and labor.
The survey, conducted in September 2024, covered 493 firms across six cities in all regions of the country. Overall, the results suggest that while there was a slight moderation in business sentiments, the economy continues to show signs of resilience and dynamism.
