Level of optimism among India's chief financial officers for the October-December period has seen an improvement and this in turn will translate to an uptick in capex as well as other investments, says a report.
The Composite CFO Optimism Index for the fourth quarter of this year increased 3.1 per cent over the July-September quarter, according to D&B India's Chief Financial Officers (CFO) survey released today.
However, year-on-year, the optimism level has declined by around 10.5 per cent.
"Optimism levels for October-December 2017 among CFOs have improved over the previous quarter. The proactive measures taken by the government, especially bank recapitalisation and amendments to GST have helped optimism levels," Dun & Bradstreet India MD Manish Sinha said.
Sinha further said besides positive domestic environment there have been modest improvements in international economic activity.
"This improved optimism level should translate to an uptick in capex and other investments, which remains muted compared with last year. What will really help now is a strong rebound in consumer demand," he added.
As per the survey, 55 per cent of CFOs are optimistic about the liquidity position of the company, while 50 per cent of CFOs in the services sector expect global macro-economic scenario for corporate sector to improve.
During October-December 2017, the optimism level of the services sector increased 4.1 per cent over the previous quarter, while the optimism level of the industrial sector increased 3.3 per cent quarter-on-quarter, the survey said.
The survey reveals how optimistic the CFOs are with respect to the overall financial health of their respective companies, the business risk environment and the macroeconomic scenario in the country.