NCAER's Business Confidence Index falls by 27.5% in June 2021 quarter

The National Council of Applied Economic Research (NCAER)’s Business Confidence Index (BCI) declined by 27.5 per cent on a quarter-on-quarter (q-o-q) basis to 61.8 during April-June 2021 from 85.2 during January-March 2021, mainly on account of the second Covid-19 wave. However, on a year-on-year (y-o-y) basis, the BCI increased by 33.2 per cent in the June 2021 quarter. The BCI is driven by four components, with equal weights in the index- overall economic conditions will improve in the next six months, financial position of firms will improve in the next six months, present investment climate is positive as compared to six months ago and present capacity utilisation is close to or above the optimal level.