Business optimism index

Business Optimism Index, part of Grant Thornton International Business Report (IBR) for April-June 2016, was recently released. The survey took note of 2,500 businesses across 36 economies.

Highlights:

• India slipped to the third position, during April-June, after remaining on top globally for the two preceding quarters.
• Companies in India were mainly concerned about the delays in key reforms like the goods and services tax, non-resolution of tax disputes and the banking sector’s performance.
• India continues to top the chart on expectations of revenue increases.
• Growth in employment expectations dropped to the second position during this period from top rank in the previous quarter.
• The rank on optimism further slipped to fourth in terms of profitability expectations.
• While the business confidence in India has weakened, there is a rise in optimism on the export front. However, red tape continued to hamper growth and ranked India as number two on the issue.
• Research and development continue to be an area of concern.
• On the global front, there is a rise in the proportion of businesses worldwide expecting increased revenue over the coming 12 months. However, growth in global export expectations continues to be slow, indicating that revenue is dependent on domestic consumer spending power.
• Consumer spending is now under threat from increased political instability, recovering oil prices and reduced plans to offer pay increases.