Home / Perspectives / Press Release / Dun & Bradstreet survey finds decline in Business Optimism for Q2 2021

Dun & Bradstreet survey finds decline in Business Optimism for Q2 2021

Dun & Bradstreet survey finds decline in Business Optimism for Q2 2021

Highlights

  • The Dun & Bradstreet Composite Business Optimism Index stands at 61.5 for Q2 2021. The index declined by 23% (q-o-q) in Q2 2021
  • Optimism for volume of sales stands at 59% - a decrease of 22 percentage points as compared to Q1 2021
  • Optimism for new orders stands at 56% - a decrease of 22 percentage points as compared to Q1 2021
  • Optimism level for net profit stands at 42% - a decrease of 29 percentage points as compared to Q1 2021
  • Optimism for selling price stands at 26% - no change from Q1 2021
  • Optimism for level of inventory stands at 42% - an increase of 8 percentage points as compared to Q1 2021

Mumbai, May 6, 2021: The Dun & Bradstreet Composite Business Optimism Index stands at 61.5 for Q2 2021, a decrease of 23% as compared to the Q1 2021 survey. Five out of six optimism indices have registered a decrease as compared to Q1 2021. The Dun & Bradstreet Composite Business Optimism Index, which has been measuring the changing business sentiment of India Inc. since 2002, is a leading indicator for India’s overall growth with a correlation co-efficient of 80% with the Gross Domestic Product (GDP).

Dun & Bradstreet's Composite Business Optimism Index:  Q1 2003 – Q2 2021

“The survey for Dun & Bradstreet Business Optimism Index conducted between the 2nd half of March and the 1st half of April 2021, captured the buoyancy in the business optimism driven by the recovery in economic activity in March, and the decline in optimism owing to the onset of the 2nd wave in April 2021. Overall optimism for Q2 2021 is down compared to the previous quarter. However, businesses remained optimistic across many parameters compared to last year when the nation-wide lockdown had brought all activities to a near halt. Businesses are currently allowed to operate with restrictions and not all states/provinces are equally impacted which could have driven the increase in the optimism levels. Further, the survey results also suggest that businesses might have learnt to adapt to the new normal and the proliferation of digitization is supporting the business continuity”.

“Going ahead, the optimism level is likely to follow the slope of the COVID-19 curve and the consequent impact it has over the lives and livelihood of people” said Arun Singh, Global Chief Economist, Dun & Bradstreet.

 

Key findings from the survey

59% of the respondents expect volume of sales to increase in Q2 2021 as compared to 81% in Q1 2021, a decrease of 22 percentage points. While 21% expect it to remain unchanged, 20% expect the volume of sales to decline.

Around 42% of the respondents expect an increase in net profits in Q2 2021 as compared to 71% in Q1 2021, a decrease of 29 percentage points. Around 32% expect net profits to remain unchanged, while around 27% expect it to decrease.

59% of the respondents expect no change in the selling price of their products in Q2 2021. 26% of the respondents expect the selling price of their products to increase during Q2 2021, while 16% expect a decline.

56% of the respondents expect their order book position to improve in Q2 2021 as compared to 78% in Q1 2021, a decrease of 22 percentage points. While 27% of the respondents expect new orders to remain unchanged, 17% anticipate new orders to decrease.

42% of the respondents expect their inventory level to increase during Q2 2021, as compared to 35% in Q1 2021. While 39% anticipate no change in inventory level, 19% expect inventory level to decline.

28% of the respondents expect an increase in the size of their workforce employed during Q2 2021 as compared to 20% in Q1 2021, an increase of 8 percentage points. While 57% anticipate no change in the number of employees, 15% expect their workforce size to decline.

022 4941 6666
Contact us