New Delhi: Non-manufacturing firms are likely to outperform manufacturing units in terms of investments during the next six months period starting April, a study has revealed.
The Business Confidence Index (BCI) among the non-manufacturing firms engaged in provision of services is significantly higher as compared to manufactured firms, according to the business outlook survey conducted by CII.
The industry body took opinions from the units including manufacturing and non-manufacturing and about 88 per cent of the respondents plan to increase investments during April-September 2006.
CII said that BCI has increased by 2.1 points at 69.3 during April-September 2006 compared to the corresponding period the previous year. The GDP for the year 2006-07 is expected to grow at a rate of more than 8 per cent.
The increased confidence index, reflects that larger number of responding firms have appraised current conditions for the growth of the overall economy, it said.
First half of 2006-07 is expected to better in terms of increase in new orders as 83 per cent of the respondents expected new orders to increase in the next six months, while about 74 per cent of the respondents revealed that new orders had increased in the second half of 2005-06, it said.
As many as 75 per cent, of the respondents, feel that capacity utilisation for the same period would be upto 100 per cent, the study said.
Further increase in production is likely because of expected increase in new orders.
Employment is also expected to increase in the second half of this financial year. This was expressed by 53 per cent of the respondents, who expected employment to increase during
April - September 2006, while 50 per cent of them said that employment had increased during the period September 2005 - March 2006, the study said.
On exports, 70 per cent of the respondents expressed confidence in exports expansion during April – September 2006.
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