Industry sentiment about growth prospects cooled significantly in the July to September quarter (Q2, 2024-25), indicated an index based on a survey of nearly 500 firms across the country.

Reversing course after two quarters of improvements, the Business Confidence Index (BCI), based on an NCAER-NSE Business Expectations Survey, moderated in Q2 to 134.3, compared with a Q1 reading of 149.8, as well as Q2 last year when it was at 140.7.

The BCI is based on four components- ‘overall economic conditions to improve in next six months’; ‘financial position of the firms will improve in next six months’; ‘present investment climate’; and whether ‘present capacity utilisation was close to or above optimal level’.