D&B's Business Optimism Index
Finger on the Pulse of Indian Business Sentiment
The D&B's Business Optimism Index is a survey-based index designed to measure the
pulse of the Indian business community. It is a quarterly survey, wherein the growth
expectations of the business community and commercial enterprises are gauged to
determine the business conditions in the short run. The survey gauges optimism with
regard to six parameters namely Volume of Sales, Net Profits, Selling Prices, New
Orders, Inventories and Employees. Since its launch in Q4 2002, the D&B Business
Optimism Index has proven to be a reliable measure of economic performance and an
advance indicator of turning points in the Indian economy. The index is also quoted
by the Reserve Bank of India in its Business Expectation Survey.
The D&B Business Optimism Index is widely recognized as an indicator that measures
the pulse of the business community and serves as a reliable benchmark for investors,
researchers, academicians and policy makers. The index is arrived at on the basis
of a quarterly survey of business expectations.
The survey is conducted on a sample of companies that are selected from Dun & Bradstreet's
commercial credit file. Respondents to the survey are asked six standard questions
on six specified parameters viz., net sales, net profits, selling prices, new orders,
inventories, and employee levels. The Composite Index is calculated as a weighted
sum of these six parameters.