Indicating a positive business sentiment, the Confederation of India Industry and the Federation of Indian Chambers of Commerce & Industry on Monday said that there is improvement in confidence level among members of corporate India.

Companies expect the overall economic situation to improve in the near term, according to two separate surveys on business confidence done by the two chambers.

According to the CII, Business Confidence Index for July-September quarter this year has shot up to 57.4, up from 53.7 in April-June quarter and 49.9 in January-March quarter. The number 50 is the dividing line on the index between positive and weak business confidence.

On the other hand, the overall Business Confidence Index in the FICCI survey stood at 72.7, which is the highest in 15 quarters. The index value in the previous survey by FICCI was 69.0. 

Sales rise A significant 77 per cent of the respondents of the CII survey expected their sales to increase in the July-September quarter, much higher than 50 per cent respondents in the previous quarter.

In the FICCI survey, 34 per cent of the participants anticipated better investment prospects over the next two quarters, compared with 21 per cent a year ago.

However, in the FICCI survey, the companies did not see much change in the employment outlook; with a majority 64 per cent not expecting to hire more over the next six months.

New investment CII said that the revival in domestic and global demand has resulted in a majority (46 per cent) of the surveyed businesses contemplating new investment in the July-September quarter, whereas only 10 per cent expected a contraction.

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