Surging Business Confidence Drives Indian Sales Index to 33 Month High


 
Although still way behind the growth figures registered in the heady pre Covid days, economic activity in India is, little by little, recovering from the disaster of the global pandemic.

Of particular note, the Business Confidence Index (highlighting confidence in the near future) surged to a 33 month high of 54.3, reflecting a strong and widespread belief that economic growth is likely to increase significantly in the first quarter of 2023.




The overall Sales Managers Index, also rose to a 33 month high in December, to a figure suggesting the expected increase in output has already started to filter through in real terms, albeit with still modest growth in economic activity.

A further good sign came from the fact that all Indexes bar Staffing remained at 50+ levels, signifying growth overall. The Staffing index, remained stubbornly under water, with an index reading of 48.6.

Looking at charts of economic activity prior to covid, exhibiting brimming self confidence and sales growth racing ahead, it appears likely that the GDP data currently emerging from the Indian Government reflects recovery from the Covid lows of activity, rather than high non Covid related growth above the levels previously recorded pre-Covid.

But what looks suspiciously like the green shoots of GDP recovery are definitely present in the December Sales Survey, and the outlook for 2023 brightening month by month.


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