The Dun & Bradstreet (D&B) Composite Business Optimism Index stands at 76.7 during fourth quarter of 2017, an increase of 6.4 per cent from the previous quarter.
However, it decreased by 4.1 per cent on a year-on-year basis, a statement said.
It further said that based on the responses received, three out of the six optimism indices have registered an increase as compared to the third quarter.
Optimism for net profits stands at 56 per cent, an increase of 1 percentage point as compared to the third quarter, but a decrease of 9 percentage points year-on-year, it added.
Optimism for new orders stands at 65 per cent, the same level as the third quarter, but 6 percentage points lower than the previous year.
“It appears that the initiatives taken by the government, and improvement in some macroeconomic indicators have allayed some concerns of economic slowdown,” said Manish Sinha, Managing Director India, Dun & Bradstreet.
“Going forward, the reform agenda of the government should continue uninhibited. However, it is the pace of implementation of these initiatives that would continue to instill optimism amongst the companies as it would indicate that the government remains committed to reinforce the growth momentum of the economy,” he added.
Specific events that have helped optimism levels are government policies to help small enterprises and exporters on GST, the festive season demand and recent hike in pay scales to teachers and academic staff, he explained.
The supply disruptions arising from GST rollout is also anticipated to reverse gradually as the companies adapt to the new system after enduring the initial glitches, he said.
Around 71 per cent of the respondents expect volume of sales to increase in the fourth quarter, compared to around 79 per cent last year, lower by 8 percentage points.
While around 20 per cent expect it to remain unchanged, around 9 per cent expect the volume of sales to decline, it said.
Further, 29 per cent of the respondents expect an increase in the size of their workforce employed during the fourth quarter, as compared to 36 per cent last year.