Services and Infrastructure Outlook Survey for Q1:2022-23

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ਪ੍ਰਕਾਸ਼ਿਤ ਤਾਰੀਖ ਅਗਸਤ 05, 2022

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Services and Infrastructure Outlook Survey for Q1:2022-23

Today, the Reserve Bank released the results of 33rd round of its quarterly services and infrastructure outlook survey (SIOS) conducted during Q1:2022-23. This forward-looking survey captures qualitative assessment and expectations of Indian companies in the services and infrastructure sectors on a set of business parameters relating to demand conditions, price situation and other business conditions. In the latest round of the survey¹, 758 companies provided their assessment for Q1:2022-23 and expectations for Q2:2022-23. Owing to uncertainties, an additional block was included in this round of the survey also for assessing the outlook on key parameters for two more quarters ahead.

Highlights:

A. Services Sector

Assessment for Q1:2022-23

Service firms assessed improvement in their overall business situation and turnover during Q1:2022-23 (Chart 1 and Table A).
Employment conditions in services sector improved further during Q1:2022-23.
More respondents perceived cost pressures emanating from cost of finance, input prices and wages, and assessed a rise in selling prices, when compared to the previous survey round.
Service companies remained pessimistic on profit margins.

Expectations for Q2:2022-23

Services sector companies were optimistic on demand conditions in terms of overall business situation and turnover in Q2:2022-23 (Chart 1 and Table A).
The job landscape is likely to improve in terms of both full-time and part-time employment.
Cost pressures are expected to continue with rise in selling prices.

Chart 1: Turnover of Services Companies - Net Response

Expectations for Q3:2022-23 and Q4:2022-23

Enterprises expect further improvement in overall business situation, turnover and employment in the second half of the financial year (Table C).
Input cost pressures may continue with gradual easing in the later half of the year.

B. Infrastructure Sector

Assessment for Q1:2022-23

Infrastructure companies revealed positive assessment on the overall business situation as well as their turnover (Chart 2 and Table B).
Cost pressures intensified in Q1:2022-23 inducing marginal uptick in sentiments for rise in selling prices, though the perception on profit margin remained downbeat.

Expectations for Q2:2022-23

Respondents were optimistic on overall business situation, turnover and employment conditions in Q2:2022-23 though the expectations were somewhat tempered when compared to the previous survey round (Table B).
Cost pressures are likely to continue, albeit marginally lower, and selling prices are expected to rise further.

Chart 2: Turnover of Infrastructure Companies - Net Response

Expectations for Q3:2022-23 and Q4:2022-23

Sequential improvement in overall business situation is expected in the second half of the financial year. Sentiments on the demand parameters also remain upbeat (Table D).
Employment conditions are likely to improve further.
Respondents expect cost pressures to continue.

Summary of Net Responses² on Survey Parameters
Table A: Services Sector
(per cent)
Parameters	Assessment period		Expectations period
Parameters	Q4:2021-22	Q1:2022-23	Q1:2022-23	Q2:2022-23
Overall Business Situation	17.3	32.2	53.4	55.9
Turnover	14.9	23.9	51.1	50.6
Full-time Employees	1.7	13.8	22.6	26.0
Part-time Employees	7.4	16.3	17.8	22.4
Availability of Finance	10.5	12.0	28.2	28.2
Cost of Finance	-6.0	-27.3	-14.5	-29.1
Salary & Wages	-19.8	-35.9	-36.3	-27.3
Cost of Inputs	-59.9	-63.8	-58.7	-60.2
Selling Price	14.0	23.9	24.9	29.8
Profit Margin	-11.1	-12.7	19.1	18.3
Inventories	8.3	17.4	18.2	24.0
Technical/Service Capacity	18.9	23.5	29.4	31.7
Physical Investment	15.2	22.5	25.3	31.5

Table B: Infrastructure Sector
(per cent)
Parameters	Assessment period		Expectations period
Parameters	Q4:2021-22	Q1:2022-23	Q1:2022-23	Q2:2022-23
Overall Business Situation	23.5	20.8	53.1	43.1
Turnover	21.3	4.7	40.0	32.0
Full-time Employees	5.0	7.8	17.9	15.9
Part-time Employees	-2.2	10.3	15.9	16.4
Availability of Finance	8.8	8.5	25.0	27.6
Cost of Finance	-21.9	-37.2	-25.4	-38.1
Salary & Wages	-20.0	-32.3	-37.5	-18.5
Cost of Inputs	-74.6	-78.7	-78.9	-75.2
Selling Price	16.1	18.4	23.2	30.6
Profit Margin	-26.6	-37.7	12.7	7.0
Inventories	12.8	11.9	20.0	22.7
Technical/Service Capacity	17.9	20.6	28.6	26.5
Physical Investment	10.3	21.6	17.2	36.1

Expectations of Select Parameters for extended period – Net response
(in per cent)
Table C: Services Sector
Parameter	Round 32	Round 33
Parameter	Q1:2022-23	Q2:2022-23	Q3:2022-23	Q4:2022-23
Overall Business Situation	53.4	55.9	60.1	60.2
Turnover	51.1	50.6	57.2	58.5
Full-time Employees	22.6	26.0	29.7	28.5
Part-time Employees	17.8	22.4	30.0	29.7
Cost of Inputs	-58.7	-60.2	-58.7	-56.7
Selling Price	24.9	29.8	37.9	35.9

Table D: Infrastructure Sector
Parameter	Round 32	Round 33
Parameter	Q1:2022-23	Q2:2022-23	Q3:2022-23	Q4:2022-23
Overall Business Situation	53.1	43.1	48.8	50.0
Turnover	40.0	32.0	52.3	50.4
Full-time Employees	17.9	15.9	26.8	23.6
Part-time Employees	15.9	16.4	32.0	28.0
Cost of Inputs	-78.9	-75.2	-70.2	-69.9
Selling Price	23.2	30.6	32.5	34.1

Note: Please see the excel file for time series data

Services Sector

Table S1: Assessment and Expectation for Overall Business Situation
(Percentage responses)^@
Quarter	Assessment				Expectation
Quarter	Better	No Change	Worse	Net response#	Better	No Change	Worse	Net response
Q1:21-22	22.8	38.5	38.7	-15.9	59.3	31.5	9.2	50.1
Q2:21-22	38.7	46.8	14.5	24.2	51.9	41.1	6.9	45.0
Q3:21-22	41.9	44.3	13.8	28.2	75.3	22.3	2.4	72.9
Q4:21-22	40.7	36.0	23.4	17.3	68.3	28.2	3.5	64.8
Q1:22-23	47.0	38.3	14.7	32.2	56.6	40.1	3.3	53.4
Q2:22-23					59.6	36.7	3.7	55.9
‘Increase’ in Overall business situation is optimistic. @: Due to rounding off percentage may not add up to 100. #: Net Response (NR) is the difference of percentage of the respondents reporting optimism and that reporting pessimism. The range is -100 to 100. Any value greater than zero indicates expansion/ optimism and any value less than zero indicates contraction/ pessimism.

Table S2: Assessment and Expectation for Turnover
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q1:21-22	20.5	39.7	39.7	-19.2	62.3	29.1	8.6	53.7
Q2:21-22	38.8	43.4	17.8	21.0	49.0	42.2	8.8	40.1
Q3:21-22	41.5	41.7	16.8	24.7	75.0	21.4	3.7	71.3
Q4:21-22	41.0	32.9	26.1	14.9	67.2	28.6	4.1	63.1
Q1:22-23	43.1	37.7	19.2	23.9	55.5	40.2	4.3	51.1
Q2:22-23					54.6	41.4	4.0	50.6
‘Increase’ in Turnover is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S3: Assessment and Expectation for Full-time Employees
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q1:21-22	14.4	64.6	21.0	-6.6	35.2	58.2	6.6	28.7
Q2:21-22	26.5	62.7	10.8	15.6	34.4	61.7	3.9	30.5
Q3:21-22	23.0	65.9	11.2	11.8	55.5	41.9	2.6	52.9
Q4:21-22	20.1	61.5	18.4	1.7	49.7	47.9	2.4	47.2
Q1:22-23	28.2	57.5	14.3	13.8	27.0	68.6	4.4	22.6
Q2:22-23					29.1	67.8	3.1	26.0
‘Increase’ in Full-time Employees is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S4: Assessment and Expectation for Part-time Employees
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q1:21-22	16.8	70.8	12.4	4.3	26.6	66.3	7.1	19.4
Q2:21-22	25.3	70.7	4.0	21.2	43.2	52.7	4.1	39.1
Q3:21-22	22.6	69.9	7.4	15.2	70.3	27.0	2.7	67.6
Q4:21-22	18.5	70.4	11.1	7.4	57.5	39.7	2.7	54.8
Q1:22-23	25.2	65.9	8.9	16.3	25.0	67.8	7.2	17.8
Q2:22-23					29.0	64.5	6.6	22.4
‘Increase’ in Part-time Employees is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S5: Assessment and Expectation for Availability of Finance
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Improve	No Change	Worsen	Net response	Improve	No Change	Worsen	Net response
Q1:21-22	14.2	60.6	25.2	-11.0	47.6	43.9	8.5	39.1
Q2:21-22	28.4	57.6	14.0	14.4	40.5	54.4	5.1	35.5
Q3:21-22	25.6	61.1	13.3	12.4	59.8	37.5	2.6	57.2
Q4:21-22	32.2	46.2	21.6	10.5	50.7	45.9	3.4	47.3
Q1:22-23	28.5	54.9	16.5	12.0	33.5	61.3	5.2	28.2
Q2:22-23					33.2	61.7	5.1	28.2
‘Improve’ in Availability of Finance is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S6: Assessment and Expectation for Cost of Finance
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q1:21-22	18.6	65.9	15.5	-3.0	34.1	54.2	11.8	-22.3
Q2:21-22	25.8	66.3	7.9	-17.9	41.2	54.7	4.1	-37.2
Q3:21-22	19.5	73.6	6.9	-12.6	56.0	41.2	2.7	-53.3
Q4:21-22	15.5	75.0	9.5	-6.0	43.6	54.0	2.4	-41.2
Q1:22-23	34.4	58.5	7.1	-27.3	17.3	79.9	2.8	-14.5
Q2:22-23					31.5	66.0	2.5	-29.1
‘Decrease’ in Cost of Finance is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S7: Assessment and Expectation for Salary/Wages
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q1:21-22	16.4	72.1	11.4	-5.0	45.2	51.2	3.6	-41.6
Q2:21-22	29.0	63.6	7.4	-21.7	34.8	62.5	2.8	-32.0
Q3:21-22	24.0	69.2	6.8	-17.2	53.4	44.9	1.7	-51.7
Q4:21-22	24.1	71.6	4.3	-19.8	49.6	49.3	1.1	-48.5
Q1:22-23	40.4	55.1	4.5	-35.9	37.0	62.4	0.6	-36.3
Q2:22-23					28.4	70.5	1.1	-27.3
‘Decrease’ in Salary/Wages is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S8: Assessment and Expectation for Cost of Inputs
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q1:21-22	34.6	57.8	7.6	-27.0	46.0	51.1	2.9	-43.2
Q2:21-22	44.4	52.8	2.7	-41.7	47.5	50.2	2.3	-45.2
Q3:21-22	47.5	48.5	4.0	-43.5	69.3	30.3	0.4	-68.8
Q4:21-22	63.5	32.9	3.6	-59.9	73.1	26.1	0.8	-72.4
Q1:22-23	67.0	29.9	3.2	-63.8	61.0	36.6	2.3	-58.7
Q2:22-23					62.0	36.1	1.9	-60.2
‘Decrease’ in Cost of Inputs is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S9: Assessment and Expectation for Selling Price
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q1:21-22	19.1	73.0	7.9	11.1	37.5	56.1	6.3	31.2
Q2:21-22	24.2	68.4	7.4	16.8	39.2	58.9	1.9	37.2
Q3:21-22	22.4	68.2	9.4	13.0	62.3	35.6	2.1	60.2
Q4:21-22	24.2	65.7	10.2	14.0	54.1	43.1	2.8	51.4
Q1:22-23	31.9	60.1	8.0	23.9	29.5	65.9	4.6	24.9
Q2:22-23					33.3	63.1	3.6	29.8
‘Increase’ in Selling Price is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S10: Assessment and Expectation for Profit Margin
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q1:21-22	13.5	53.0	33.5	-20.0	44.5	43.5	12.0	32.5
Q2:21-22	22.4	55.7	21.9	0.6	38.6	51.7	9.7	28.9
Q3:21-22	21.2	58.3	20.5	0.7	55.0	38.8	6.2	48.8
Q4:21-22	21.2	46.4	32.4	-11.1	46.5	47.0	6.5	40.1
Q1:22-23	19.0	49.3	31.7	-12.7	28.9	61.3	9.8	19.1
Q2:22-23					30.1	58.1	11.8	18.3
‘Increase’ in Profit Margin is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S11: Assessment and Expectation for Inventories
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q1:21-22	14.4	73.3	12.3	2.1	29.6	61.9	8.5	21.1
Q2:21-22	25.5	66.4	8.1	17.4	36.0	60.1	3.9	32.0
Q3:21-22	23.5	69.0	7.5	16.0	62.8	34.8	2.4	60.4
Q4:21-22	18.9	70.6	10.6	8.3	54.9	41.8	3.4	51.5
Q1:22-23	25.4	66.7	8.0	17.4	22.9	72.5	4.7	18.2
Q2:22-23					27.5	68.9	3.6	24.0
‘Increase’ in Inventories is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S12: Assessment and Expectation for Technical/Service Capacity
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q1:21-22	18.6	76.4	4.9	13.7	42.5	55.9	1.6	40.9
Q2:21-22	29.3	69.3	1.4	27.9	44.4	54.0	1.7	42.7
Q3:21-22	23.1	72.5	4.3	18.8	73.7	25.7	0.6	73.2
Q4:21-22	23.7	71.6	4.7	18.9	65.1	34.1	0.8	64.3
Q1:22-23	25.8	71.9	2.3	23.5	31.3	66.9	1.8	29.4
Q2:22-23					33.9	63.8	2.3	31.7
‘Increase’ in Technical/Service Capacity is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table S13: Assessment and Expectation for Physical Investment
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q1:21-22	14.6	80.2	5.3	9.3	34.7	61.8	3.6	31.1
Q2:21-22	27.6	70.8	1.6	26.0	42.8	55.9	1.3	41.5
Q3:21-22	20.7	74.4	4.9	15.8	68.8	30.7	0.5	68.2
Q4:21-22	20.5	74.3	5.3	15.2	61.5	37.4	1.1	60.3
Q1:22-23	25.0	72.5	2.5	22.5	27.7	69.9	2.4	25.3
Q2:22-23					32.5	66.5	1.0	31.5
‘Increase’ in Physical Investment is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Infrastructure Sector

Table I1: Assessment and Expectation for Overall Business Situation
(Percentage responses)^@
Quarter	Assessment				Expectation
Quarter	Better	No Change	Worse	Net response#	Better	No Change	Worse	Net response
Q1:21-22	16.7	39.5	43.8	-27.0	70.2	23.8	6.0	64.3
Q2:21-22	35.0	40.8	24.2	10.8	56.6	37.4	6.0	50.5
Q3:21-22	41.9	44.1	14.0	27.9	71.3	26.7	2.1	69.2
Q4:21-22	46.9	29.6	23.5	23.5	75.7	19.9	4.4	71.3
Q1:22-23	46.9	26.9	26.2	20.8	59.3	34.6	6.2	53.1
Q2:22-23					53.1	36.9	10.0	43.1
‘Increase’ in Overall business situation is optimistic. @: Due to rounding off percentage may not add up to 100. #: Net Response (NR) is the difference of percentage of the respondents reporting optimism and that reporting pessimism. The range is -100 to 100. Any value greater than zero indicates expansion/ optimism and any value less than zero indicates contraction/ pessimism.

Table I2: Assessment and Expectation for Turnover
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q1:21-22	13.9	41.6	44.5	-30.6	61.2	34.1	4.7	56.5
Q2:21-22	29.6	43.8	26.7	2.9	51.1	41.8	7.1	43.9
Q3:21-22	40.7	46.7	12.6	28.1	67.9	27.5	4.6	63.3
Q4:21-22	45.0	31.3	23.8	21.3	73.3	20.0	6.7	66.7
Q1:22-23	37.2	30.2	32.6	4.7	51.3	37.5	11.3	40.0
Q2:22-23					43.0	46.1	10.9	32.0
‘Increase’ in Turnover is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I3: Assessment and Expectation for Full-time Employees
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q1:21-22	9.3	64.6	26.1	-16.8	31.3	61.4	7.2	24.1
Q2:21-22	20.4	61.7	17.9	2.5	36.1	59.9	4.0	32.1
Q3:21-22	20.1	72.4	7.5	12.7	50.0	45.8	4.2	45.8
Q4:21-22	12.5	80.0	7.5	5.0	54.5	39.6	6.0	48.5
Q1:22-23	22.7	62.5	14.8	7.8	23.1	71.8	5.1	17.9
Q2:22-23					20.6	74.6	4.8	15.9
‘Increase’ in Full-time Employees is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I4: Assessment and Expectation for Part-time Employees
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q1:21-22	11.0	74.7	14.3	-3.3	23.5	67.6	8.8	14.7
Q2:21-22	23.5	72.5	3.9	19.6	52.5	44.2	3.3	49.2
Q3:21-22	24.5	74.5	1.0	23.5	69.3	28.8	2.0	67.3
Q4:21-22	4.4	88.9	6.7	-2.2	73.2	24.7	2.1	71.1
Q1:22-23	17.2	75.9	6.9	10.3	20.5	75.0	4.5	15.9
Q2:22-23					21.8	72.7	5.5	16.4
‘Increase’ in Part-time Employees is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I5: Assessment and Expectation for Availability of Finance
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Improve	No Change	Worsen	Net response	Improve	No Change	Worsen	Net response
Q1:21-22	10.0	57.9	32.1	-22.1	35.7	53.6	10.7	25.0
Q2:21-22	26.7	52.5	20.8	5.8	44.9	48.5	6.6	38.3
Q3:21-22	27.6	62.7	9.7	17.9	56.1	39.7	4.2	51.9
Q4:21-22	31.3	46.3	22.5	8.8	66.4	29.1	4.5	61.9
Q1:22-23	29.5	49.6	20.9	8.5	28.8	67.5	3.8	25.0
Q2:22-23					33.9	59.8	6.3	27.6
‘Improve’ in Availability of Finance is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I6: Assessment and Expectation for Cost of Finance
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q1:21-22	15.9	63.0	21.0	5.1	31.7	67.1	1.2	-30.5
Q2:21-22	23.1	65.5	11.3	-11.8	44.6	51.7	3.7	-41.0
Q3:21-22	24.2	71.9	3.9	-20.3	49.8	47.7	2.6	-47.2
Q4:21-22	27.4	67.1	5.5	-21.9	59.4	38.3	2.3	-57.0
Q1:22-23	43.0	51.2	5.8	-37.2	26.8	71.8	1.4	-25.4
Q2:22-23					39.8	58.5	1.7	-38.1
‘Decrease’ in Cost of Finance is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I7: Assessment and Expectation for Salary/Wages
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q1:21-22	11.5	73.8	14.7	3.2	45.6	48.1	6.3	-39.2
Q2:21-22	23.8	65.8	10.4	-13.3	40.7	56.4	2.9	-37.8
Q3:21-22	22.4	73.9	3.7	-18.7	51.3	46.2	2.5	-48.7
Q4:21-22	23.8	72.5	3.8	-20.0	59.0	41.0	0.0	-59.0
Q1:22-23	38.5	55.4	6.2	-32.3	38.8	60.0	1.3	-37.5
Q2:22-23					20.8	76.9	2.3	-18.5
‘Decrease’ in Salary/Wages is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I8: Assessment and Expectation for Cost of Inputs
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q1:21-22	41.9	53.5	4.6	-37.3	47.2	50.0	2.8	-44.4
Q2:21-22	55.9	42.7	1.3	-54.6	62.4	37.6	0.0	-62.4
Q3:21-22	53.8	46.2	0.0	-53.8	76.5	23.0	0.4	-76.1
Q4:21-22	77.5	19.7	2.8	-74.6	83.1	15.4	1.5	-81.5
Q1:22-23	79.5	19.7	0.8	-78.7	80.3	18.3	1.4	-78.9
Q2:22-23					76.0	23.1	0.8	-75.2
‘Decrease’ in Cost of Inputs is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I9: Assessment and Expectation for Selling Price
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q1:21-22	12.7	75.6	11.8	0.9	33.3	52.2	14.5	18.8
Q2:21-22	25.8	62.6	11.6	14.1	51.8	46.8	1.4	50.5
Q3:21-22	27.0	67.6	5.4	21.6	59.9	38.1	2.0	57.9
Q4:21-22	21.4	73.2	5.4	16.1	66.4	32.7	0.9	65.5
Q1:22-23	32.2	54.0	13.8	18.4	25.0	73.2	1.8	23.2
Q2:22-23					34.1	62.4	3.5	30.6
‘Increase’ in Selling Price is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I10: Assessment and Expectation for Profit Margin
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q1:21-22	8.6	52.0	39.4	-30.8	39.2	44.3	16.5	22.8
Q2:21-22	19.2	51.9	28.9	-9.6	42.3	50.0	7.7	34.7
Q3:21-22	26.5	52.9	20.6	5.9	49.8	43.5	6.7	43.1
Q4:21-22	19.0	35.4	45.6	-26.6	57.4	33.1	9.6	47.8
Q1:22-23	13.8	34.6	51.5	-37.7	27.8	57.0	15.2	12.7
Q2:22-23					22.5	62.0	15.5	7.0
‘Increase’ in Profit Margin is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I11: Assessment and Expectation for Inventories
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q1:21-22	10.9	79.2	10.0	0.9	33.8	59.2	7.0	26.8
Q2:21-22	25.1	66.1	8.7	16.4	45.2	52.1	2.8	42.4
Q3:21-22	26.3	69.3	4.4	21.9	58.6	36.5	5.0	53.6
Q4:21-22	19.1	74.5	6.4	12.8	64.9	31.6	3.5	61.4
Q1:22-23	20.9	70.1	9.0	11.9	24.4	71.1	4.4	20.0
Q2:22-23					25.8	71.2	3.0	22.7
‘Increase’ in Inventories is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I12: Assessment and Expectation for Technical/Service Capacity
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q1:21-22	12.1	81.9	6.0	6.0	28.6	64.3	7.1	21.4
Q2:21-22	29.6	66.7	3.7	25.9	70.3	29.1	0.7	69.6
Q3:21-22	27.5	71.4	1.1	26.4	82.1	16.4	1.5	80.6
Q4:21-22	28.6	60.7	10.7	17.9	76.7	22.2	1.1	75.6
Q1:22-23	23.5	73.5	2.9	20.6	32.1	64.3	3.6	28.6
Q2:22-23					29.4	67.6	2.9	26.5
‘Increase’ in Technical/Service Capacity is optimistic. Footnotes @ and # given in Table 1 are applicable here.

Table I13: Assessment and Expectation for Physical Investment
(Percentage responses)
Quarter	Assessment				Expectation
Quarter	Increase	No Change	Decrease	Net response	Increase	No Change	Decrease	Net response
Q1:21-22	15.9	79.0	5.1	10.8	29.0	66.1	4.8	24.2
Q2:21-22	28.5	68.8	2.8	25.7	68.8	31.2	0.0	68.8
Q3:21-22	30.1	68.8	1.1	29.0	73.6	23.6	2.8	70.8
Q4:21-22	17.2	75.9	6.9	10.3	77.4	20.4	2.2	75.3
Q1:22-23	27.0	67.6	5.4	21.6	24.1	69.0	6.9	17.2
Q2:22-23					38.9	58.3	2.8	36.1
‘Increase’ in Physical Investment is optimistic. Footnotes @ and # given in Table 1 are applicable here.

¹ The survey results reflect the respondents’ views, which are not necessarily shared by the Reserve Bank. This round of the survey was launched on April 22, 2022 and results were compiled with data received till June 30, 2022. Results of the previous survey round were released on the Bank’s website on April 08, 2022.

² Net Response (NR) is the difference between the percentage of respondents reporting optimism and those reporting pessimism. It ranges between -100 to 100. Positive value indicates expansion/optimism and negative value indicates contraction/pessimism. In other words, NR = (I – D); where, I is the percentage response of ‘Increase/optimism’, D is the percentage response of ‘Decrease/pessimism’ and E is the percentage response as ‘no change/ equal’ (i.e., I+D+E=100). For example, increase in turnover is optimism whereas decrease in cost of inputs is optimism.