The Reserve Bank of India (RBI) in its latest quarterly industrial outlook survey has showed that manufacturing companies reported marginally better demand conditions in Q3:2024-25 vis-a-vis the previous quarter, as reflected in their assessment for production, employment, capacity utilization, exports and order books.
The survey report further noted that input cost pressures are assessed to have risen further during the quarter Q3:2024-25 which impacted profit margins despite some rise in selling prices. Further, business assessment index (BAI) for Q3:2024-25 remained in the expansion terrain close to its level in the previous quarter.
As per the survey report, firms remained optimistic on demand conditions in Q4:2024-25, with modest improvement in production, order books, capacity utilization and exports. Input cost pressures are expected to rise further in Q4:2024-25; pressures from salary outgo are likely to soften, while the pace of rise in selling prices and profit margins are expected to slow down.
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