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Date : Oct 09, 2024
Services and Infrastructure Outlook Survey for Q2:2024-25

Today, the Reserve Bank released the results of 42nd round of its quarterly Services and Infrastructure Outlook Survey (SIOS) conducted during Q2:2024-25. This forward-looking survey1 captures qualitative assessment and expectations of Indian companies engaged in the services and infrastructure sectors on a set of business parameters relating to demand conditions, price situation and other business conditions. In the latest round of the survey2, 761 companies provided their assessment for Q2:2024-25 and expectations for Q3:2024-25 as well as outlook on key parameters for the subsequent two quarters.

Highlights:

A. Services Sector

Assessment for Q2:2024-25

  • Service sector firms retained positive assessment about their overall business situation, turnover and employment position in Q2:2024-25 with somewhat lower sanguinity vis-à-vis the previous quarter (Chart 1 and Table A).

  • Pressures emanating from cost of finance, input prices and wages witnessed moderation.

  • Sentiments on growth in selling prices and profit margins moderated but remained positive (Table A).

Expectations for Q3:2024-25

  • Respondents remained highly optimistic on demand conditions in Q3:2024-25, though their optimism regarding overall business situation and job landscape stood lower vis-à-vis the previous quarter (Chart 1 and Table A).

  • Pressures emanating from input costs and finance costs are likely to continue during Q3:2024-25; pressures stemming from salary outgo are, however, expected to ease.

  • Selling prices and profit margins are expected to record lower growth in Q3:2024-25.

Expectations for Q4:2024-25 and Q1:2025-26

  • Overall business situation is expected to improve; firms remain highly optimistic on turnover and employment (Table C).

  • Input cost pressures are likely to persist and growth in selling prices is in sync with it.

    Chart 1: Turnover of Services Companies -Net Response

  • Respondents reported that they could provide 11.2 per cent additional services with their resources during Q1:2024-25 (Table S14).

B. Infrastructure Sector

Assessment for Q2:2024-25

  • Infrastructure companies retained positive sentiments on overall business situation as well as their turnover (Chart 2 and Table B).

  • Enterprises gauged higher cost pressures from input costs; pressures from salary outgo and cost of finance, however, were assessed to have eased.

  • Respondents assessed subdued rise in selling prices and profit margins during Q2:2024-25.

Expectations for Q3:2024-25

  • Infrastructure firms polled for highly optimistic outlook on overall business conditions and turnover (Chart 2 and Table B).

  • Input cost pressures in the infrastructure sector are likely to persist with associated rise in selling prices; optimism on profit margin moderated.

Expectations for Q4:2024-25 and Q1:2025-26

  • Firms expressed high optimism on demand conditions till Q1:2025-26 (Table D).

  • Input cost pressures are likely to persist in near term and growth in selling prices are expected to record sustained rise.

Chart 2: Turnover of Infrastructure Companies -Net Response

Summary of Net Responses3 on Survey Parameters

Table A: Services Sector
(per cent)
Parameters Assessment period Expectations period
Q1:24-25 Q2:24-25 Q2:24-25 Q3:24-25
Overall Business Situation 34.1 30.2 69.4 68.0
Turnover 33.5 30.7 68.7 68.9
Full-time Employees 27.8 20.1 50.5 44.0
Part-time Employees 22.7 13.9 52.9 52.1
Availability of Finance 32.0 19.8 57.6 50.1
Cost of Finance -35.1 -32.3 -56.9 -54.3
Salary & Wages -42.6 -25.8 -53.8 -44.5
Cost of Inputs -44.7 -40.6 -65.9 -64.2
Selling Price 21.7 12.1 54.1 48.0
Profit Margin 10.5 4.2 45.4 38.4
Inventories 24.3 18.4 52.0 46.6
Technical/Service Capacity 26.2 18.5 57.0 58.3
Physical Investment 24.2 16.1 55.4 56.7

Table B: Infrastructure Sector
(per cent)
Parameters Assessment period Expectations period
Q1:24-25 Q2:24-25 Q2:24-25 Q3:24-25
Overall Business Situation 26.6 21.7 74.5 67.4
Turnover 26.6 25.4 69.9 71.0
Full-time Employees 21.4 18.1 62.7 39.3
Part-time Employees 25.5 9.7 60.7 48.9
Availability of Finance 29.2 18.2 68.0 54.4
Cost of Finance -29.1 -26.6 -62.4 -60.3
Salary & Wages -34.4 -26.8 -70.6 -43.1
Cost of Inputs -36.1 -40.8 -75.2 -70.8
Selling Price 21.5 10.9 66.7 50.0
Profit Margin 16.9 5.8 61.8 40.6
Inventories 29.0 20.5 70.1 56.4
Technical/Service Capacity 31.9 19.1 79.1 72.5
Physical Investment 27.3 25.7 75.8 75.3

Expectations of Select Parameters for extended period – Net response (in per cent)

Table C: Services Sector
Parameter Round 41 Round 42
Q2:24-25 Q3:24-25 Q4:24-25 Q1:25-26
Overall Business Situation 69.4 68.0 69.6 69.7
Turnover 68.7 68.9 70.7 70.4
Full-time Employees 50.5 44.0 45.7 44.7
Part-time Employees 52.9 52.1 51.0 50.5
Cost of Inputs -65.9 -64.2 -58.6 -58.2
Selling Price 54.1 48.0 50.6 51.4

Table D: Infrastructure Sector
Parameter Round 41 Round 42
Q2:24-25 Q3:24-25 Q4:24-25 Q1:25-26
Overall Business Situation 74.5 67.4 71.9 71.1
Turnover 69.9 71.0 74.5 72.5
Full-time Employees 62.7 39.3 45.2 42.2
Part-time Employees 60.7 48.9 62.4 61.9
Cost of Inputs -75.2 -70.8 -59.8 -59.8
Selling Price 66.7 50.0 57.7 60.0

Note: Please see the excel file for time series data.

Services Sector

Table S1: Assessment and Expectation for Overall Business Situation
(Percentage responses)@
Quarter Assessment Expectation
Better No Change Worse Net response# Better No Change Worse Net response
Q2:23-24 48.4 37.7 14.0 34.4 62.3 31.3 6.4 56.0
Q3:23-24 47.6 40.4 12.0 35.6 51.0 41.2 7.8 43.1
Q4:23-24 48.9 39.8 11.4 37.5 59.4 36.0 4.6 54.8
Q1:24-25 43.0 48.1 8.9 34.1 68.5 28.4 3.1 65.3
Q2:24-25 41.9 46.4 11.7 30.2 71.5 26.5 2.0 69.4
Q3:24-25         70.1 27.8 2.1 68.0
‘Increase’ in Overall business situation is optimistic.
@: Due to rounding off percentage may not add up to 100.
#: Net Response (NR) is the difference of percentage of the respondents reporting optimism and that reporting pessimism. The range is -100 to 100. Any value greater than zero indicates expansion/ optimism and any value less than zero indicates contraction/ pessimism.

Table S2: Assessment and Expectation for Turnover
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:23-24 43.8 41.3 14.9 28.9 59.3 36.3 4.4 54.9
Q3:23-24 48.2 35.9 15.9 32.3 40.3 49.9 9.8 30.5
Q4:23-24 51.6 34.3 14.0 37.6 59.8 33.8 6.4 53.4
Q1:24-25 45.2 43.1 11.7 33.5 70.5 23.6 5.9 64.6
Q2:24-25 43.6 43.5 12.9 30.7 71.9 24.8 3.3 68.7
Q3:24-25         71.9 25.2 3.0 68.9
‘Increase’ in Turnover is optimistic. Footnotes @ and # given in Table S1 are applicable here.

Table S3: Assessment and Expectation for Full-time Employees
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:23-24 34.3 48.7 17.0 17.3 44.7 52.6 2.7 42.0
Q3:23-24 29.9 61.6 8.5 21.4 26.4 63.7 9.9 16.5
Q4:23-24 33.9 57.1 9.0 24.8 32.4 64.0 3.6 28.8
Q1:24-25 34.8 58.2 7.0 27.8 48.4 49.5 2.1 46.3
Q2:24-25 29.0 62.0 9.0 20.1 52.2 46.0 1.7 50.5
Q3:24-25         45.8 52.4 1.8 44.0
‘Increase’ in Full-time Employees is optimistic. Footnotes @ and # given in Table S1 are applicable here.

Table S4: Assessment and Expectation for Part-time Employees
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:23-24 24.4 57.5 18.1 6.2 36.7 57.9 5.3 31.4
Q3:23-24 21.5 70.3 8.2 13.2 31.0 52.3 16.7 14.4
Q4:23-24 30.2 62.4 7.5 22.7 28.8 65.4 5.8 23.1
Q1:24-25 28.9 65.0 6.1 22.7 50.8 46.7 2.5 48.3
Q2:24-25 22.2 69.6 8.3 13.9 55.4 42.1 2.5 52.9
Q3:24-25         54.1 43.8 2.1 52.1
‘Increase’ in Part-time Employees is optimistic. Footnotes @ and # given in Table S1 are applicable here.

Table S5: Assessment and Expectation for Availability of Finance
(Percentage responses)
Quarter Assessment Expectation
Improve No Change Worsen Net response Improve No Change Worsen Net response
Q2:23-24 30.6 56.8 12.6 18.0 39.5 57.0 3.5 36.0
Q3:23-24 32.3 60.3 7.4 24.9 31.5 61.1 7.3 24.2
Q4:23-24 36.3 55.3 8.4 27.8 40.4 56.7 2.9 37.4
Q1:24-25 37.9 56.2 5.9 32.0 56.4 42.5 1.1 55.3
Q2:24-25 28.5 62.8 8.7 19.8 58.8 40.0 1.2 57.6
Q3:24-25         51.4 47.2 1.4 50.1
‘Improve’ in Availability of Finance is optimistic. Footnotes @ and # given in Table S1 are applicable here.

Table S6: Assessment and Expectation for Cost of Finance
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:23-24 39.0 52.1 8.9 -30.1 38.1 57.6 4.3 -33.7
Q3:23-24 36.5 59.3 4.2 -32.3 32.8 61.0 6.2 -26.6
Q4:23-24 38.0 55.6 6.5 -31.5 38.1 58.2 3.7 -34.4
Q1:24-25 40.0 55.1 4.9 -35.1 51.0 43.5 5.5 -45.5
Q2:24-25 36.6 59.0 4.3 -32.3 59.4 38.0 2.6 -56.9
Q3:24-25         55.9 42.5 1.6 -54.3
‘Decrease’ in Cost of Finance is optimistic. Footnotes @ and # given in Table S1 are applicable here.

Table S7: Assessment and Expectation for Salary/Wages
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:23-24 44.5 50.3 5.3 -39.2 46.4 52.0 1.6 -44.8
Q3:23-24 42.4 53.5 4.0 -38.4 33.6 62.3 4.1 -29.5
Q4:23-24 34.8 60.7 4.5 -30.2 38.6 59.6 1.8 -36.8
Q1:24-25 45.3 52.0 2.7 -42.6 46.7 53.3 0.0 -46.7
Q2:24-25 29.9 66.0 4.1 -25.8 54.5 44.9 0.7 -53.8
Q3:24-25         45.0 54.5 0.5 -44.5
‘Decrease’ in Salary/Wages is optimistic. Footnotes @ and # given in Table S1 are applicable here.

Table S8: Assessment and Expectation for Cost of Inputs
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:23-24 39.1 49.9 11.0 -28.1 47.0 46.8 6.1 -40.9
Q3:23-24 44.6 48.6 6.8 -37.9 32.1 57.9 9.9 -22.2
Q4:23-24 46.7 49.3 4.0 -42.8 47.4 50.9 1.7 -45.7
Q1:24-25 47.5 49.6 2.9 -44.7 57.1 42.5 0.4 -56.7
Q2:24-25 44.4 51.8 3.8 -40.6 66.5 32.9 0.6 -65.9
Q3:24-25         65.6 33.1 1.3 -64.2
‘Decrease’ in Cost of Inputs is optimistic. Footnotes @ and # given in Table S1 are applicable here.

Table S9: Assessment and Expectation for Selling Price
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:23-24 21.9 62.7 15.4 6.5 39.5 53.7 6.8 32.7
Q3:23-24 24.3 66.6 9.2 15.1 26.4 61.5 12.1 14.2
Q4:23-24 29.9 62.6 7.5 22.4 35.3 60.0 4.7 30.7
Q1:24-25 26.9 67.9 5.2 21.7 52.4 46.0 1.6 50.8
Q2:24-25 20.5 71.1 8.4 12.1 55.5 43.2 1.4 54.1
Q3:24-25         50.4 47.3 2.3 48.0
‘Increase’ in Selling Price is optimistic. Footnotes @ and # given in Table S1 are applicable here.

Table S10: Assessment and Expectation for Profit Margin
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:23-24 26.3 51.8 22.0 4.3 50.3 40.6 9.1 41.2
Q3:23-24 27.1 55.5 17.4 9.7 27.3 59.2 13.5 13.8
Q4:23-24 29.6 57.0 13.3 16.3 36.1 55.2 8.6 27.5
Q1:24-25 26.5 57.5 16.0 10.5 50.6 45.1 4.2 46.4
Q2:24-25 21.0 62.1 16.8 4.2 49.6 46.3 4.2 45.4
Q3:24-25         42.3 53.7 3.9 38.4
‘Increase’ in Profit Margin is optimistic. Footnotes @ and # given in Table S1 are applicable here.

Table S11: Assessment and Expectation for Inventories
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:23-24 30.2 56.2 13.6 16.5 40.3 54.3 5.4 34.8
Q3:23-24 29.6 62.9 7.5 22.2 34.5 53.9 11.6 22.9
Q4:23-24 32.2 60.9 6.9 25.4 34.2 60.0 5.8 28.3
Q1:24-25 31.2 62.0 6.9 24.3 50.9 45.9 3.2 47.8
Q2:24-25 24.5 69.4 6.1 18.4 54.3 43.4 2.3 52.0
Q3:24-25         47.7 51.3 1.1 46.6
‘Increase’ in Inventories is optimistic. Footnotes @ and # given in Table S1 are applicable here.

Table S12: Assessment and Expectation for Technical/Service Capacity
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:23-24 28.1 69.2 2.7 25.3 51.2 47.5 1.3 49.8
Q3:23-24 22.6 75.8 1.6 21.0 41.9 56.3 1.9 40.0
Q4:23-24 29.1 66.2 4.8 24.3 34.1 65.9 0.0 34.1
Q1:24-25 29.4 67.4 3.2 26.2 54.7 45.3 0.0 54.7
Q2:24-25 23.0 72.5 4.5 18.5 57.2 42.5 0.2 57.0
Q3:24-25         58.6 41.1 0.3 58.3
‘Increase’ in Technical/Service Capacity is optimistic. Footnotes @ and # given in Table S1 are applicable here.

Table S13: Assessment and Expectation for Physical Investment
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:23-24 30.7 66.1 3.1 27.6 43.4 54.8 1.8 41.5
Q3:23-24 21.7 76.6 1.6 20.1 23.3 75.8 0.9 22.3
Q4:23-24 28.0 66.7 5.3 22.6 32.2 67.8 0.0 32.2
Q1:24-25 27.4 69.3 3.2 24.2 53.8 45.7 0.5 53.2
Q2:24-25 21.6 72.9 5.5 16.1 55.7 44.1 0.3 55.4
Q3:24-25         57.0 42.7 0.3 56.7
‘Increase’ in Physical Investment is optimistic. Footnotes @ and # given in Table S1 are applicable here.

Table S14: Estimated Spare Capacity for the Services Sector
Survey conducted during Reference quarter Response rate for the question on Spare Capacity
(per cent)		 Spare Capacity
(per cent)
Q4:2020-21 Q3:2020-21 73.4 13.9
Q1:2021-22 Q4:2020-21 25.0 13.3
Q2:2021-22 Q1:2021-22 69.3 24.8
Q3:2021-22 Q2:2021-22 64.4 11.1
Q4:2021-22 Q3:2021-22 40.8 13.0
Q1:2022-23 Q4:2021-22 58.3 17.4
Q2:2022-23 Q1:2022-23 79.5 13.5
Q3:2022-23 Q2:2022-23 25.2 12.6
Q4:2022-23 Q3:2022-23 63.0 13.8
Q1:2023-24 Q4:2022-23 79.8 13.6
Q2:2023-24 Q1:2023-24 84.3 12.3
Q3:2023-24 Q2:2023-24 74.0 11.8
Q4:2023-24 Q3:2023-24 74.8 11.7
Q1:2024-25 Q4:2023-24 78.8 11.3
Q2:2024-25 Q1:2024-25 71.5 11.2

Infrastructure Sector

Table I1: Assessment and Expectation for Overall Business Situation
(Percentage responses)@
Quarter Assessment Expectation
Better No Change Worse Net response# Better No Change Worse Net response
Q2:23-24 44.2 41.3 14.4 29.8 62.6 30.8 6.6 56.0
Q3:23-24 44.2 45.8 10.0 34.2 67.3 29.8 2.9 64.4
Q4:23-24 45.0 42.5 12.5 32.5 73.1 21.8 5.0 68.1
Q1:24-25 37.7 51.3 11.0 26.6 70.3 25.4 4.2 66.1
Q2:24-25 38.4 44.9 16.7 21.7 76.5 21.6 2.0 74.5
Q3:24-25         70.3 26.8 2.9 67.4
‘Increase’ in Overall business situation is optimistic.
@: Due to rounding off percentage may not add up to 100.
#: Net Response (NR) is the difference of percentage of the respondents reporting optimism and that reporting pessimism. The range is -100 to 100. Any value greater than zero indicates expansion/ optimism and any value less than zero indicates contraction/ pessimism.

Table I2: Assessment and Expectation for Turnover
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:23-24 46.2 39.4 14.4 31.7 61.1 33.3 5.6 55.6
Q3:23-24 47.9 40.3 11.8 36.1 53.8 42.3 3.8 50.0
Q4:23-24 42.5 42.5 15.0 27.5 75.6 22.7 1.7 73.9
Q1:24-25 37.7 51.3 11.0 26.6 68.4 24.8 6.8 61.5
Q2:24-25 41.3 42.8 15.9 25.4 73.2 23.5 3.3 69.9
Q3:24-25         73.2 24.6 2.2 71.0
‘Increase’ in Turnover is optimistic. Footnotes @ and # given in Table I1 are applicable here.

Table I3: Assessment and Expectation for Full-time Employees
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:23-24 28.8 58.7 12.5 16.3 48.9 48.9 2.2 46.7
Q3:23-24 32.5 57.3 10.3 22.2 42.3 54.8 2.9 39.4
Q4:23-24 27.5 65.0 7.5 20.0 63.2 34.2 2.6 60.7
Q1:24-25 31.2 59.1 9.7 21.4 47.5 51.7 0.8 46.6
Q2:24-25 28.3 61.6 10.1 18.1 64.7 33.3 2.0 62.7
Q3:24-25         41.5 56.3 2.2 39.3
‘Increase’ in Full-time Employees is optimistic. Footnotes @ and # given in Table I1 are applicable here.

Table I4: Assessment and Expectation for Part-time Employees
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:23-24 37.9 55.2 6.9 31.0 50.9 45.3 3.8 47.2
Q3:23-24 35.8 57.5 6.6 29.2 60.3 34.5 5.2 55.2
Q4:23-24 29.2 66.3 4.5 24.7 68.3 31.7 0.0 68.3
Q1:24-25 32.8 59.9 7.3 25.5 55.8 41.9 2.3 53.5
Q2:24-25 21.5 66.7 11.8 9.7 63.7 33.3 3.0 60.7
Q3:24-25         54.3 40.2 5.4 48.9
‘Increase’ in Part-time Employees is optimistic. Footnotes @ and # given in Table I1 are applicable here.

Table I5: Assessment and Expectation for Availability of Finance
(Percentage responses)
Quarter Assessment Expectation
Improve No Change Worsen Net response Improve No Change Worsen Net response
Q2:23-24 36.5 52.9 10.6 26.0 51.1 43.3 5.6 45.6
Q3:23-24 36.7 57.5 5.8 30.8 46.6 49.5 3.9 42.7
Q4:23-24 34.7 58.5 6.8 28.0 63.0 35.3 1.7 61.3
Q1:24-25 35.1 59.1 5.8 29.2 58.6 40.5 0.9 57.8
Q2:24-25 31.4 55.5 13.1 18.2 68.0 32.0 0.0 68.0
Q3:24-25         55.1 44.1 0.7 54.4
‘Improve’ in Availability of Finance is optimistic. Footnotes @ and # given in Table I1 are applicable here.

Table I6: Assessment and Expectation for Cost of Finance
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:23-24 51.0 42.7 6.3 -44.8 44.0 53.6 2.4 -41.7
Q3:23-24 38.2 55.5 6.4 -31.8 54.2 45.8 0.0 -54.2
Q4:23-24 35.2 61.1 3.7 -31.5 61.7 37.4 0.9 -60.7
Q1:24-25 36.4 56.3 7.3 -29.1 60.4 38.7 0.9 -59.4
Q2:24-25 38.3 50.0 11.7 -26.6 65.1 32.2 2.7 -62.4
Q3:24-25         63.5 33.3 3.2 -60.3
‘Decrease’ in Cost of Finance is optimistic. Footnotes @ and # given in Table I1 are applicable here.

Table I7: Assessment and Expectation for Salary/Wages
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:23-24 42.7 50.5 6.8 -35.9 47.8 52.2 0.0 -47.8
Q3:23-24 44.9 50.8 4.2 -40.7 41.2 56.9 2.0 -39.2
Q4:23-24 27.7 70.6 1.7 -26.1 59.8 39.3 0.9 -59.0
Q1:24-25 38.3 57.8 3.9 -34.4 55.2 44.8 0.0 -55.2
Q2:24-25 31.9 63.0 5.1 -26.8 70.6 29.4 0.0 -70.6
Q3:24-25         43.1 56.9 0.0 -43.1
‘Decrease’ in Salary/Wages is optimistic. Footnotes @ and # given in Table I1 are applicable here.

Table I8: Assessment and Expectation for Cost of Inputs
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:23-24 50.0 45.1 4.9 -45.1 51.1 44.3 4.5 -46.6
Q3:23-24 52.1 43.6 4.3 -47.9 52.0 41.0 7.0 -45.0
Q4:23-24 52.6 43.9 3.5 -49.1 59.1 37.4 3.5 -55.7
Q1:24-25 42.2 51.7 6.1 -36.1 63.4 36.6 0.0 -63.4
Q2:24-25 49.2 42.3 8.5 -40.8 75.9 23.4 0.7 -75.2
Q3:24-25         70.8 29.2 0.0 -70.8
‘Decrease’ in Cost of Inputs is optimistic. Footnotes @ and # given in Table I1 are applicable here.

Table I9: Assessment and Expectation for Selling Price
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:23-24 33.7 53.3 13.0 20.7 43.4 54.2 2.4 41.0
Q3:23-24 37.0 54.0 9.0 28.0 42.4 53.3 4.3 38.0
Q4:23-24 28.9 61.1 10.0 18.9 62.0 36.0 2.0 60.0
Q1:24-25 30.8 60.0 9.2 21.5 60.7 33.7 5.6 55.1
Q2:24-25 24.5 61.8 13.6 10.9 69.8 27.1 3.1 66.7
Q3:24-25         52.7 44.5 2.7 50.0
‘Increase’ in Selling Price is optimistic. Footnotes @ and # given in Table I1 are applicable here.

Table I10: Assessment and Expectation for Profit Margin
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:23-24 24.5 58.8 16.7 7.8 46.1 48.3 5.6 40.4
Q3:23-24 35.0 55.0 10.0 25.0 37.3 56.9 5.9 31.4
Q4:23-24 26.1 56.3 17.6 8.4 56.3 36.1 7.6 48.7
Q1:24-25 28.6 59.7 11.7 16.9 54.7 38.5 6.8 47.9
Q2:24-25 26.8 52.2 21.0 5.8 65.1 31.6 3.3 61.8
Q3:24-25         45.7 49.3 5.1 40.6
‘Increase’ in Profit Margin is optimistic. Footnotes @ and # given in Table I1 are applicable here.

Table I11: Assessment and Expectation for Inventories
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:23-24 42.1 52.6 5.3 36.8 36.7 60.0 3.3 33.3
Q3:23-24 41.7 53.4 4.9 36.9 60.5 36.8 2.6 57.9
Q4:23-24 34.0 62.1 3.9 30.1 75.2 23.8 1.0 74.3
Q1:24-25 34.8 59.4 5.8 29.0 58.0 39.0 3.0 55.0
Q2:24-25 30.4 59.8 9.8 20.5 71.5 27.0 1.5 70.1
Q3:24-25         59.1 38.2 2.7 56.4
‘Increase’ in Inventories is optimistic. Footnotes @ and # given in Table I1 are applicable here.

Table I12: Assessment and Expectation for Technical/Service Capacity
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:23-24 38.3 59.6 2.1 36.2 51.2 48.8 0.0 51.2
Q3:23-24 39.8 55.9 4.3 35.5 66.7 33.3 0.0 66.7
Q4:23-24 32.5 64.9 2.6 29.9 75.0 25.0 0.0 75.0
Q1:24-25 36.2 59.5 4.3 31.9 66.2 32.4 1.4 64.9
Q2:24-25 30.9 57.4 11.8 19.1 79.1 20.9 0.0 79.1
Q3:24-25         72.5 27.5 0.0 72.5
‘Increase’ in Technical/Service Capacity is optimistic. Footnotes @ and # given in Table I1 are applicable here.

Table I13: Assessment and Expectation for Physical Investment
(Percentage responses)
Quarter Assessment Expectation
Increase No Change Decrease Net response Increase No Change Decrease Net response
Q2:23-24 38.0 58.2 3.8 34.2 36.8 60.3 2.9 33.8
Q3:23-24 35.8 60.0 4.2 31.6 46.8 53.2 0.0 46.8
Q4:23-24 28.6 68.8 2.6 26.0 75.3 24.7 0.0 75.3
Q1:24-25 33.1 61.2 5.8 27.3 64.0 36.0 0.0 64.0
Q2:24-25 36.5 52.7 10.8 25.7 75.8 24.2 0.0 75.8
Q3:24-25         75.3 24.7 0.0 75.3
‘Increase’ in Physical Investment is optimistic. Footnotes @ and # given in Table I1 are applicable here.

1 The survey results reflect the respondents’ views, which are not necessarily shared by the Reserve Bank.

2 Results of the previous survey round were released on the Bank’s website on August 08, 2024.

3 Net Response (NR) is the difference between the percentage of respondents reporting optimism and those reporting pessimism. It ranges between -100 to 100. Positive value indicates expansion/optimism and negative value indicates contraction/pessimism. In other words, NR = (I – D); where, I is the percentage response of ‘Increase/optimism’, D is the percentage response of ‘Decrease/pessimism’ and E is the percentage response as ‘no change/ equal’ (i.e., I+D+E=100). For example, increase in turnover is optimism whereas decrease in cost of inputs is optimism.


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