Today, the Reserve Bank released the results of 102nd round of its industrial outlook survey (IOS). The survey encapsulates qualitative assessment of the business climate by Indian manufacturing companies for Q1:2023-24 and their expectations for Q2:2023-241 as well as outlook on selected parameters for the two subsequent quarters. In all, 1,247 companies responded in this round of the survey, which was conducted during Q1:2023-24. Highlights: A. Assessment for Q1:2023-24 -
Manufacturing companies reported somewhat slower improvement in demand conditions during Q1:2023-24, as revealed in their assessment on production, order books and capacity utilisation (Table A). -
Raw material cost pressures eased during the quarter but the pressures from rising salary outgo and elevated cost of finance are assessed to have sustained. -
Manufactures reported an uptick in selling price sentiments, with concomitant change in assessment for profit margin. -
Overall business sentiments in the manufacturing sector remained positive; business assessment index (BAI)2 remained steady at 112.2 in Q1:2023-24 (Chart 1). B. Expectations for Q2:2023-24 -
Respondents were more optimistic on demand conditions for Q2:2023-24, as reflected in their improved expectations on production, order book, capacity utilisation, employment and foreign trade (Table A). -
Cost pressures from financing and wages are likely to continue during Q2:2023-24, whereas it is expected to soften a bit in the case of raw materials. -
Manufacturers expect higher selling prices and profit margins in Q2:2023-24. -
The business expectations index (BEI) improved to 132.5 for Q2:2023-24 from 126.4 in the previous quarter (Chart 1). C. Expectations for Q3:2023-24 and Q4:2023-24 -
Manufacturers continue to remain optimistic on production, order books, employment, capacity utilisation and overall business situation for the second half of the financial year (Table B). -
Input cost pressure is expected to continue with some easing and manufacturers expect that improved pricing power may enable them to raise selling price. Table A: Summary of Net responses3 on Survey Parameters | (per cent) | Parameters | Assessment period | Expectation period | Q4:2022-23 | Q1:2023-24 | Q1:2023-24 | Q2:2023-24 | Production | 33.0 | 25.3 | 54.8 | 58.0 | Order Books | 25.4 | 21.9 | 47.8 | 58.1 | Pending Orders | 8.9 | 4.9 | 3.4 | -1.7 | Capacity Utilisation | 22.8 | 15.5 | 41.2 | 46.6 | Inventory of Raw Materials | -8.3 | -6.3 | -18.0 | -29.0 | Inventory of Finished Goods | -8.2 | -7.2 | -17.2 | -28.8 | Exports | 12.2 | 17.6 | 36.2 | 53.5 | Imports | 15.3 | 20.4 | 33.2 | 52.6 | Employment | 12.4 | 16.1 | 26.7 | 40.5 | Financial Situation (Overall) | 30.6 | 24.0 | 52.9 | 56.3 | Availability of Finance (from internal accruals) | 28.8 | 25.8 | 46.6 | 52.3 | Availability of Finance (from banks & other sources) | 23.3 | 20.4 | 40.1 | 49.0 | Availability of Finance (from overseas, if applicable) | 7.6 | 18.0 | 32.5 | 50.4 | Cost of Finance | -32.4 | -32.4 | -45.8 | -54.2 | Cost of Raw Material | -59.1 | -41.1 | -60.9 | -58.3 | Salary/ Other Remuneration | -21.2 | -38.1 | -44.3 | -49.3 | Selling Price | 9.7 | 12.8 | 28.4 | 41.4 | Profit Margin | -5.4 | -1.2 | 19.1 | 35.7 | Overall Business Situation | 34.4 | 24.9 | 58.3 | 60.7 | Table B: Business Expectations of Select Parameters for extended period – Net response | (per cent) | Parameters | Round 101 | Round 102 | Q1:2023-24 | Q2:2023-24 | Q3:2023-24 | Q4:2023-24 | Overall Business Situation | 58.3 | 60.7 | 60.7 | 63.1 | Production | 54.8 | 58.0 | 58.0 | 60.2 | Order Books | 47.8 | 58.1 | 54.6 | 55.2 | Capacity Utilisation | 41.2 | 46.6 | 54.4 | 56.5 | Employment | 26.7 | 40.5 | 43.7 | 43.3 | Cost of Raw Materials | -60.9 | -58.3 | -49.3 | -49.6 | Selling Prices | 28.4 | 41.4 | 45.1 | 46.5 | Note: Please see the excel file for time series data. Table 1: Assessment and Expectations for Production | (Percentage responses) | Quarter | Total response | Assessment | Expectations | Increase | Decrease | No change | Net response | Increase | Decrease | No change | Net response | Q1:2022-23 | 1,239 | 36.6 | 14.4 | 48.9 | 22.2 | 70.4 | 4.9 | 24.7 | 65.6 | Q2:2022-23 | 1,234 | 34.3 | 16.3 | 49.4 | 18.1 | 72.4 | 5.0 | 22.6 | 67.4 | Q3:2022-23 | 1,356 | 40.5 | 15.4 | 44.1 | 25.1 | 60.8 | 4.6 | 34.5 | 56.2 | Q4:2022-23 | 1,066 | 46.3 | 13.3 | 40.4 | 33.0 | 61.2 | 3.8 | 34.9 | 57.4 | Q1:2023-24 | 1,247 | 39.6 | 14.3 | 46.0 | 25.3 | 60.6 | 5.8 | 33.6 | 54.8 | Q2:2023-24 | | | | | | 63.0 | 5.0 | 31.9 | 58.0 | ‘Increase’ in production is optimistic. Note: The sum of components may not add up to total due to rounding off (This is applicable for all tables). | Table 2: Assessment and Expectations for Order Books | (Percentage responses) | Quarter | Total response | Assessment | Expectations | Increase | Decrease | No change | Net response | Increase | Decrease | No change | Net response | Q1:2022-23 | 1,239 | 34.1 | 12.5 | 53.4 | 21.7 | 70.4 | 4.2 | 25.4 | 66.1 | Q2:2022-23 | 1,234 | 30.7 | 12.1 | 57.2 | 18.6 | 72.7 | 4.6 | 22.6 | 68.1 | Q3:2022-23 | 1,356 | 33.1 | 12.1 | 54.8 | 21.0 | 67.1 | 4.7 | 28.3 | 62.4 | Q4:2022-23 | 1,066 | 37.2 | 11.8 | 51.0 | 25.4 | 63.3 | 3.9 | 32.8 | 59.4 | Q1:2023-24 | 1,247 | 33.0 | 11.1 | 55.9 | 21.9 | 54.6 | 6.8 | 38.6 | 47.8 | Q2:2023-24 | | | | | | 63.0 | 4.8 | 32.2 | 58.1 | ‘Increase’ in order books is optimistic. | Table 3: Assessment and Expectations for Pending Orders | (Percentage responses) | Quarter | Total response | Assessment | Expectations | Above Normal | Below Normal | Normal | Net response | Above Normal | Below Normal | Normal | Net response | Q1:2022-23 | 1,239 | 6.7 | 14.2 | 79.1 | 7.5 | 8.8 | 10.6 | 80.6 | 1.8 | Q2:2022-23 | 1,234 | 10.3 | 17.6 | 72.0 | 7.3 | 7.7 | 10.3 | 82.1 | 2.6 | Q3:2022-23 | 1,356 | 8.4 | 14.6 | 76.9 | 6.2 | 10.8 | 10.1 | 79.2 | -0.7 | Q4:2022-23 | 1,066 | 4.2 | 13.1 | 82.7 | 8.9 | 8.9 | 10.1 | 81.0 | 1.2 | Q1:2023-24 | 1,247 | 9.2 | 14.1 | 76.6 | 4.9 | 4.5 | 8.0 | 87.5 | 3.4 | Q2:2023-24 | | | | | | 10.9 | 9.2 | 79.9 | -1.7 | Pending orders ‘Below Normal’ is optimistic. | Table 4: Assessment and Expectations for Capacity Utilisation (Main Product) | (Percentage responses) | Quarter | Total response | Assessment | Expectations | Increase | Decrease | No change | Net response | Increase | Decrease | No change | Net response | Q1:2022-23 | 1,239 | 29.5 | 12.8 | 57.7 | 16.8 | 63.5 | 4.5 | 32.0 | 59.0 | Q2:2022-23 | 1,234 | 23.4 | 14.8 | 61.8 | 8.6 | 65.6 | 5.0 | 29.4 | 60.6 | Q3:2022-23 | 1,356 | 29.8 | 15.0 | 55.2 | 14.9 | 51.5 | 4.9 | 43.6 | 46.6 | Q4:2022-23 | 1,066 | 34.3 | 11.5 | 54.1 | 22.8 | 51.3 | 4.1 | 44.6 | 47.2 | Q1:2023-24 | 1,247 | 28.5 | 13.0 | 58.5 | 15.5 | 46.7 | 5.5 | 47.8 | 41.2 | Q2:2023-24 | | | | | | 51.8 | 5.2 | 42.9 | 46.6 | ‘Increase’ in capacity utilisation is optimistic. | Table 5: Assessment and Expectations for Level of CU (compared to the average in last 4 quarters) | (Percentage responses) | Quarter | Total response | Assessment | Expectations | Above Normal | Below Normal | Normal | Net response | Above Normal | Below Normal | Normal | Net response | Q1:2022-23 | 1,239 | 19.6 | 10.4 | 70.0 | 9.2 | 39.3 | 5.4 | 55.4 | 33.9 | Q2:2022-23 | 1,234 | 20.5 | 12.8 | 66.7 | 7.8 | 50.2 | 6.3 | 43.5 | 43.9 | Q3:2022-23 | 1,356 | 28.7 | 13.2 | 58.1 | 15.5 | 37.0 | 6.1 | 56.9 | 30.9 | Q4:2022-23 | 1,066 | 19.8 | 10.5 | 69.7 | 9.3 | 34.7 | 8.1 | 57.2 | 26.7 | Q1:2023-24 | 1,247 | 31.4 | 10.4 | 58.2 | 21.0 | 23.7 | 6.2 | 70.2 | 17.5 | Q2:2023-24 | | | | | | 39.0 | 6.0 | 55.1 | 33.0 | ‘Above Normal’ in Level of capacity utilisation is optimistic. | Table 6: Assessment and Expectations for Assessment of Production Capacity (with regard to expected demand in next 6 months) | (Percentage responses) | Quarter | Total response | Assessment | Expectations | More than adequate | Less than adequate | Adequate | Net response | More than adequate | Less than adequate | Adequate | Net response | Q1:2022-23 | 1,239 | 25.2 | 7.2 | 67.6 | 18.0 | 42.7 | 3.9 | 53.5 | 38.8 | Q2:2022-23 | 1,234 | 21.1 | 6.8 | 72.1 | 14.3 | 51.5 | 5.4 | 43.0 | 46.1 | Q3:2022-23 | 1,356 | 28.9 | 4.4 | 66.7 | 24.6 | 42.9 | 4.5 | 52.7 | 38.4 | Q4:2022-23 | 1,066 | 17.3 | 5.7 | 77.0 | 11.6 | 42.7 | 3.3 | 53.9 | 39.4 | Q1:2023-24 | 1,247 | 25.8 | 5.7 | 68.4 | 20.1 | 25.3 | 3.8 | 70.9 | 21.5 | Q2:2023-24 | | | | | | 43.4 | 3.9 | 52.7 | 39.5 | ‘More than adequate’ in Assessment of Production Capacity is optimistic. | Table 7: Assessment and Expectations for Exports | (Percentage responses) | Quarter | Total response | Assessment | Expectations | Increase | Decrease | No change | Net response | Increase | Decrease | No change | Net response | Q1:2022-23 | 1,239 | 25.5 | 11.2 | 63.4 | 14.3 | 62.4 | 4.4 | 33.2 | 58.0 | Q2:2022-23 | 1,234 | 25.2 | 14.0 | 60.8 | 11.1 | 65.2 | 4.4 | 30.4 | 60.8 | Q3:2022-23 | 1,356 | 25.6 | 17.1 | 57.3 | 8.5 | 61.2 | 5.2 | 33.6 | 56.0 | Q4:2022-23 | 1,066 | 25.4 | 13.3 | 61.3 | 12.2 | 55.5 | 3.9 | 40.6 | 51.5 | Q1:2023-24 | 1,247 | 30.1 | 12.5 | 57.4 | 17.6 | 43.0 | 6.8 | 50.2 | 36.2 | Q2:2023-24 | | | | | | 57.9 | 4.4 | 37.7 | 53.5 | ‘Increase’ in exports is optimistic. | Table 8: Assessment and Expectations for Imports | (Percentage responses) | Quarter | Total response | Assessment | Expectations | Increase | Decrease | No change | Net response | Increase | Decrease | No change | Net response | Q1:2022-23 | 1,239 | 23.9 | 9.0 | 67.0 | 14.9 | 59.7 | 3.4 | 36.9 | 56.4 | Q2:2022-23 | 1,234 | 23.5 | 10.1 | 66.4 | 13.4 | 64.5 | 3.2 | 32.3 | 61.3 | Q3:2022-23 | 1,356 | 23.8 | 12.2 | 64.0 | 11.6 | 60.8 | 3.2 | 36.0 | 57.6 | Q4:2022-23 | 1,066 | 22.6 | 7.3 | 70.1 | 15.3 | 54.3 | 2.8 | 42.9 | 51.5 | Q1:2023-24 | 1,247 | 28.9 | 8.6 | 62.5 | 20.4 | 37.4 | 4.2 | 58.4 | 33.2 | Q2:2023-24 | | | | | | 55.8 | 3.2 | 41.0 | 52.6 | ‘Increase’ in imports is optimistic. | Table 9: Assessment and Expectations for level of Raw Materials Inventory | (Percentage responses) | Quarter | Total response | Assessment | Expectations | Above average | Below average | Average | Net response | Above average | Below average | Average | Net response | Q1:2022-23 | 1,239 | 16.8 | 7.0 | 76.1 | -9.8 | 42.4 | 3.6 | 54.0 | -38.8 | Q2:2022-23 | 1,234 | 15.0 | 10.5 | 74.5 | -4.6 | 46.1 | 4.6 | 49.3 | -41.5 | Q3:2022-23 | 1,356 | 18.1 | 7.3 | 74.6 | -10.8 | 32.8 | 7.1 | 60.1 | -25.7 | Q4:2022-23 | 1,066 | 13.1 | 4.7 | 82.2 | -8.3 | 32.4 | 5.6 | 62.0 | -26.8 | Q1:2023-24 | 1,247 | 13.4 | 7.1 | 79.5 | -6.3 | 20.5 | 2.5 | 76.9 | -18.0 | Q2:2023-24 | | | | | | 33.0 | 4.0 | 63.1 | -29.0 | ‘Below average’ Inventory of raw materials is optimistic. | Table 10: Assessment and Expectations for level of Finished Goods Inventory | (Percentage responses) | Quarter | Total response | Assessment | Expectations | Above average | Below average | Average | Net response | Above average | Below average | Average | Net response | Q1:2022-23 | 1,239 | 16.4 | 7.4 | 76.2 | -9.0 | 42.4 | 3.0 | 54.6 | -39.5 | Q2:2022-23 | 1,234 | 14.2 | 10.2 | 75.6 | -4.0 | 45.6 | 4.3 | 50.1 | -41.3 | Q3:2022-23 | 1,356 | 17.1 | 7.7 | 75.2 | -9.5 | 33.4 | 6.9 | 59.7 | -26.5 | Q4:2022-23 | 1,066 | 13.3 | 5.1 | 81.5 | -8.2 | 31.9 | 5.8 | 62.3 | -26.1 | Q1:2023-24 | 1,247 | 14.0 | 6.8 | 79.2 | -7.2 | 19.9 | 2.8 | 77.3 | -17.2 | Q2:2023-24 | | | | | | 33.2 | 4.4 | 62.4 | -28.8 | ‘Below average’ Inventory of finished goods is optimistic. | Table 11: Assessment and Expectations for Employment | (Percentage responses) | Quarter | Total response | Assessment | Expectations | Increase | Decrease | No change | Net response | Increase | Decrease | No change | Net response | Q1:2022-23 | 1,239 | 23.4 | 8.1 | 68.4 | 15.3 | 52.7 | 2.5 | 44.7 | 50.2 | Q2:2022-23 | 1,234 | 21.5 | 9.0 | 69.5 | 12.5 | 57.1 | 2.1 | 40.8 | 54.9 | Q3:2022-23 | 1,356 | 23.0 | 9.4 | 67.7 | 13.6 | 45.0 | 1.2 | 53.9 | 43.8 | Q4:2022-23 | 1,066 | 19.3 | 7.0 | 73.7 | 12.4 | 39.0 | 2.5 | 58.5 | 36.4 | Q1:2023-24 | 1,247 | 25.9 | 9.9 | 64.2 | 16.1 | 29.8 | 3.1 | 67.1 | 26.7 | Q2:2023-24 | | | | | | 43.5 | 3.0 | 53.5 | 40.5 | ‘Increase’ in employment is optimistic. | Table 12: Assessment and Expectations for Overall Financial Situation | (Percentage responses) | Quarter | Total response | Assessment | Expectations | Better | Worsen | No change | Net response | Better | Worsen | No change | Net response | Q1:2022-23 | 1,239 | 33.0 | 12.3 | 54.7 | 20.6 | 69.3 | 3.9 | 26.7 | 65.4 | Q2:2022-23 | 1,234 | 28.7 | 14.8 | 56.4 | 13.9 | 70.4 | 3.4 | 26.2 | 67.1 | Q3:2022-23 | 1,356 | 35.6 | 15.5 | 49.0 | 20.1 | 61.4 | 3.8 | 34.8 | 57.7 | Q4:2022-23 | 1,066 | 40.2 | 9.6 | 50.2 | 30.6 | 63.9 | 3.3 | 32.8 | 60.6 | Q1:2023-24 | 1,247 | 36.6 | 12.6 | 50.7 | 24.0 | 56.3 | 3.4 | 40.3 | 52.9 | Q2:2023-24 | | | | | | 60.2 | 3.9 | 35.9 | 56.3 | ‘Better’ overall financial situation is optimistic. | Table 13: Assessment and Expectations for Working Capital Finance Requirement | (Percentage responses) | Quarter | Total response | Assessment | Expectations | Increase | Decrease | No change | Net response | Increase | Decrease | No change | Net response | Q1:2022-23 | 1,239 | 33.4 | 7.9 | 58.7 | 25.5 | 62.8 | 1.4 | 35.7 | 61.4 | Q2:2022-23 | 1,234 | 29.6 | 6.8 | 63.5 | 22.8 | 65.0 | 2.6 | 32.5 | 62.4 | Q3:2022-23 | 1,356 | 35.2 | 7.3 | 57.5 | 27.9 | 51.2 | 1.6 | 47.3 | 49.6 | Q4:2022-23 | 1,066 | 36.4 | 4.3 | 59.3 | 32.1 | 52.3 | 1.1 | 46.5 | 51.2 | Q1:2023-24 | 1,247 | 34.8 | 5.8 | 59.4 | 29.1 | 48.0 | 1.9 | 50.0 | 46.1 | Q2:2023-24 | | | | | | 53.3 | 2.2 | 44.4 | 51.1 | ‘Increase’ in working capital finance is optimistic. | Table 14: Assessment and Expectations for Availability of Finance (from Internal Accruals) | (Percentage responses) | Quarter | Total response | Assessment | Expectations | Improve | Worsen | No change | Net response | Improve | Worsen | No change | Net response | Q1:2022-23 | 1,239 | 27.8 | 9.7 | 62.4 | 18.1 | 62.4 | 2.5 | 35.2 | 59.9 | Q2:2022-23 | 1,234 | 24.0 | 8.0 | 68.0 | 15.9 | 64.2 | 2.4 | 33.4 | 61.9 | Q3:2022-23 | 1,356 | 31.1 | 9.1 | 59.8 | 21.9 | 51.3 | 2.0 | 46.7 | 49.3 | Q4:2022-23 | 1,066 | 33.3 | 4.5 | 62.2 | 28.8 | 55.2 | 1.7 | 43.1 | 53.5 | Q1:2023-24 | 1,247 | 33.2 | 7.4 | 59.4 | 25.8 | 48.7 | 2.0 | 49.3 | 46.6 | Q2:2023-24 | | | | | | 54.4 | 2.1 | 43.5 | 52.3 | ‘Improvement’ in availability of finance is optimistic. | Table 15: Assessment and Expectations for Availability of Finance (from banks and other sources) | (Percentage responses) | Quarter | Total response | Assessment | Expectations | Improve | Worsen | No change | Net response | Improve | Worsen | No change | Net response | Q1:2022-23 | 1,239 | 24.8 | 7.6 | 67.5 | 17.2 | 59.3 | 1.5 | 39.2 | 57.8 | Q2:2022-23 | 1,234 | 21.9 | 6.5 | 71.6 | 15.4 | 62.2 | 1.8 | 36.1 | 60.4 | Q3:2022-23 | 1,356 | 26.0 | 9.1 | 64.9 | 17.0 | 56.7 | 1.7 | 41.6 | 55.1 | Q4:2022-23 | 1,066 | 27.8 | 4.5 | 67.7 | 23.3 | 50.5 | 1.3 | 48.2 | 49.2 | Q1:2023-24 | 1,247 | 26.5 | 6.1 | 67.4 | 20.4 | 42.2 | 2.1 | 55.7 | 40.1 | Q2:2023-24 | | | | | | 50.5 | 1.5 | 47.9 | 49.0 | ‘Improvement’ in availability of finance is optimistic. | Table 16: Assessment and Expectations for Availability of Finance (from overseas, if applicable) | (Percentage responses) | Quarter | Total response | Assessment | Expectations | Improve | Worsen | No change | Net response | Improve | Worsen | No change | Net response | Q1:2022-23 | 1,239 | 21.9 | 7.5 | 70.6 | 14.4 | 60.2 | 0.9 | 38.9 | 59.2 | Q2:2022-23 | 1,234 | 17.4 | 6.8 | 75.8 | 10.6 | 65.8 | 1.2 | 33.0 | 64.6 | Q3:2022-23 | 1,356 | 20.4 | 9.7 | 69.9 | 10.7 | 59.6 | 0.8 | 39.6 | 58.9 | Q4:2022-23 | 1,066 | 11.1 | 3.6 | 85.3 | 7.6 | 51.3 | 1.3 | 47.4 | 50.1 | Q1:2023-24 | 1,247 | 23.8 | 5.8 | 70.4 | 18.0 | 34.3 | 1.8 | 64.0 | 32.5 | Q2:2023-24 | | | | | | 52.4 | 2.0 | 45.7 | 50.4 | ‘Improvement’ in availability of finance is optimistic. | Table 17: Assessment and Expectations for Cost of Finance | (Percentage responses) | Quarter | Total response | Assessment | Expectations | Increase | Decrease | No change | Net response | Increase | Decrease | No change | Net response | Q1:2022-23 | 1,239 | 30.5 | 6.9 | 62.6 | -23.6 | 57.0 | 2.1 | 40.9 | -54.9 | Q2:2022-23 | 1,234 | 36.1 | 6.1 | 57.8 | -30.1 | 65.6 | 1.6 | 32.8 | -64.0 | Q3:2022-23 | 1,356 | 37.0 | 5.9 | 57.1 | -31.1 | 53.5 | 1.6 | 44.9 | -51.9 | Q4:2022-23 | 1,066 | 36.2 | 3.8 | 60.0 | -32.4 | 51.6 | 1.1 | 47.3 | -50.5 | Q1:2023-24 | 1,247 | 36.9 | 4.5 | 58.6 | -32.4 | 47.5 | 1.7 | 50.8 | -45.8 | Q2:2023-24 | | | | | | 56.4 | 2.2 | 41.5 | -54.2 | ‘Decrease’ in cost of finance is optimistic. | Table 18: Assessment and Expectations for Cost of Raw Materials | (Percentage responses) | Quarter | Total response | Assessment | Expectations | Increase | Decrease | No change | Net response | Increase | Decrease | No change | Net response | Q1:2022-23 | 1,239 | 85.5 | 1.1 | 13.3 | -84.4 | 78.2 | 1.2 | 20.6 | -77.0 | Q2:2022-23 | 1,234 | 77.0 | 4.6 | 18.4 | -72.5 | 80.6 | 1.6 | 17.9 | -79.0 | Q3:2022-23 | 1,356 | 73.0 | 8.1 | 18.9 | -64.9 | 66.8 | 2.6 | 30.7 | -64.2 | Q4:2022-23 | 1,066 | 64.5 | 5.4 | 30.2 | -59.1 | 63.4 | 2.4 | 34.2 | -60.9 | Q1:2023-24 | 1,247 | 49.1 | 8.0 | 42.8 | -41.1 | 62.6 | 1.7 | 35.8 | -60.9 | Q2:2023-24 | | | | | | 60.6 | 2.4 | 37.0 | -58.3 | ‘Decrease’ in cost of raw materials is optimistic. | Table 19: Assessment and Expectations for Salary/Other Remuneration | (Percentage responses) | Quarter | Total response | Assessment | Expectations | Increase | Decrease | No change | Net response | Increase | Decrease | No change | Net response | Q1:2022-23 | 1,239 | 39.6 | 4.8 | 55.5 | -34.8 | 66.3 | 0.7 | 33.0 | -65.6 | Q2:2022-23 | 1,234 | 30.8 | 4.4 | 64.7 | -26.4 | 61.3 | 0.4 | 38.3 | -60.8 | Q3:2022-23 | 1,356 | 30.1 | 3.1 | 66.8 | -27.0 | 46.3 | 0.3 | 53.4 | -46.0 | Q4:2022-23 | 1,066 | 23.1 | 1.9 | 75.0 | -21.2 | 39.3 | 0.6 | 60.0 | -38.7 | Q1:2023-24 | 1,247 | 41.1 | 3.0 | 56.0 | -38.1 | 45.2 | 0.9 | 53.9 | -44.3 | Q2:2023-24 | | | | | | 49.8 | 0.5 | 49.7 | -49.3 | ‘Decrease’ in Salary / other remuneration is optimistic. | Table 20: Assessment and Expectations for Selling Price | (Percentage responses) | Quarter | Total response | Assessment | Expectations | Increase | Decrease | No change | Net response | Increase | Decrease | No change | Net response | Q1:2022-23 | 1,239 | 33.3 | 8.3 | 58.4 | 25.0 | 59.5 | 3.8 | 36.7 | 55.7 | Q2:2022-23 | 1,234 | 25.1 | 10.7 | 64.2 | 14.4 | 63.4 | 3.2 | 33.4 | 60.3 | Q3:2022-23 | 1,356 | 23.3 | 12.9 | 63.8 | 10.4 | 48.8 | 3.7 | 47.5 | 45.1 | Q4:2022-23 | 1,066 | 21.6 | 11.8 | 66.6 | 9.7 | 43.2 | 3.6 | 53.1 | 39.6 | Q1:2023-24 | 1,247 | 26.1 | 13.3 | 60.6 | 12.8 | 34.0 | 5.6 | 60.4 | 28.4 | Q2:2023-24 | | | | | | 46.9 | 5.4 | 47.7 | 41.4 | ‘Increase’ in selling price is optimistic. | Table 21: Assessment and Expectations for Profit Margin | (Percentage responses) | Quarter | Total response | Assessment | Expectations | Increase | Decrease | No change | Net response | Increase | Decrease | No change | Net response | Q1:2022-23 | 1,239 | 22.5 | 20.7 | 56.7 | 1.8 | 53.6 | 10.4 | 35.9 | 43.2 | Q2:2022-23 | 1,234 | 16.2 | 25.5 | 58.2 | -9.3 | 57.6 | 10.1 | 32.3 | 47.4 | Q3:2022-23 | 1,356 | 17.6 | 26.1 | 56.3 | -8.4 | 44.2 | 9.0 | 46.8 | 35.2 | Q4:2022-23 | 1,066 | 16.2 | 21.6 | 62.1 | -5.4 | 41.0 | 8.1 | 50.9 | 32.9 | Q1:2023-24 | 1,247 | 20.6 | 21.8 | 57.5 | -1.2 | 30.5 | 11.4 | 58.1 | 19.1 | Q2:2023-24 | | | | | | 43.8 | 8.1 | 48.1 | 35.7 | ‘Increase’ in profit margin is optimistic. | Table 22: Assessment and Expectations for Overall Business Situation | (Percentage responses) | Quarter | Total response | Assessment | Expectations | Better | Worsen | No change | Net response | Better | Worsen | No change | Net response | Q1:2022-23 | 1,239 | 36.0 | 13.8 | 50.2 | 22.3 | 71.8 | 3.8 | 24.4 | 68.0 | Q2:2022-23 | 1,234 | 31.6 | 15.7 | 52.7 | 15.8 | 73.9 | 3.2 | 22.9 | 70.7 | Q3:2022-23 | 1,356 | 37.7 | 17.4 | 44.9 | 20.3 | 63.8 | 4.4 | 31.7 | 59.4 | Q4:2022-23 | 1,066 | 45.9 | 11.4 | 42.7 | 34.4 | 66.9 | 3.7 | 29.4 | 63.1 | Q1:2023-24 | 1,247 | 39.9 | 15.0 | 45.1 | 24.9 | 62.4 | 4.0 | 33.6 | 58.3 | Q2:2023-24 | | | | | | 65.0 | 4.3 | 30.7 | 60.7 | ‘Better’ Overall Business Situation is optimistic. | Table 23: Business Sentiments | Quarter | Business Assessment Index (BAI) | Business Expectations Index (BEI) | Q1:2022-23 | 110.1 | 134.7 | Q2:2022-23 | 106.7 | 137.5 | Q3:2022-23 | 108.6 | 134.4 | Q4:2022-23 | 112.2 | 132.9 | Q1:2023-24 | 112.2 | 126.4 | Q2:2023-24 | | 132.5 | |