Business outlook marginally better this quarter: CII

With the economy projected to grow at a healthy pace in 2010-11, business outlook for the industry has improved, even if marginally, for the last quarter, said a CII survey.

According to the chamber's survey, the Business Confidence Index for January-March 2010-11 stood at 68.7 as compared to 67.3 in the previous quarter.

"The prospect for the coming quarter (January-March 2011) appears to be brighter...," it said.

Besides, about 70% of the respondents expected the country's economy to grow by over 8% in 2010-11.

The government has projected the GDP growth of 8.6% for the current fiscal.

Over 60% of the businessmen in the survey said that they would like to increase their spending on capacity expansion during January-March 2010 as compared to the previous quarter, it added.

During the last quarter of the fiscal, over half of the respondents expect capacity utilisation between 75-100%, it said, adding that 75% expect their sales to increase during the period.

About 59% foresee an increase in production in the next three months despite rising raw material costs and concerns about slackening consumer demand.

"Forty four% of the respondents expect employment to increase from the current level in the fourth quarter of the current fiscal," the survey added.