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Business Optimism Index Q3 2022

September 16, 2022 2319 0 Industry Trends

Business Optimism Index Q3 2022

The D&B Optimism Index is recognised as a product, which measures the pulse of the business community and serves as a reliable benchmark for investors. Over time, this index has emerged as a leading indicator of turning points in economic activity.

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Due to the strong headwinds that India Inc. faces from slowing global growth, monetary policy spillovers, high inflationary pressures, a depreciating rupee and the rise in interest rates, the optimism level of businesses deteriorated to a five-quarter low in Q3 2022.

Challenges to businesses are intensifying. At the time when businesses face margin pressure both from rising input and borrowing costs, the imposition of taxes on goods and services, especially on export goods, is likely to impact corporate earnings and might have added to the weak sentiment.

Our survey shows that optimism level of businesses for net profits and new orders, which indicate demand for goods and services, is at its lowest in eight quarters. We expect business sentiment to remain bearish as demand turns tepid and risks remain elevated.


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