Manufacturing Companies Saw Improvement In Demand In Q3FY22

11 Feb 2022 , 03:57 PM

The Reserve Bank released the results of the 96th round of the Industrial Outlook Survey (IOS). In all, 1082 companies responded in this round of the survey conducted during October-December 2021. Owing to uncertainty driven by the COVID-19 pandemic, an additional block was included in this round of the survey for assessing the outlook on key parameters for two quarters ahead as well as three quarters ahead.

Manufacturing enterprises assessed improvement in demand condition in terms of production, order books and employment situation in Q3:2021-22, albeit at a slower pace when compared to the previous survey round. Sentiments on capacity utilisation and availability of finance improved further in Q3:2021-22. Manufacturers perceived continued price pressures with some softening in the pace of increase in input cost and selling prices.

Profit margin is assessed to remain in positive terrain with some moderation vis-à-vis the preceding quarter. Business sentiments of manufacturers remained well in the expansion terrain though it waned marginally, as reflected in the business assessment index which stood at 115.0 in Q3:2021-22 as compared to 119.4 in the previous quarter.

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