Economic activity shows dynamism but at moderated pace in Q2: NCAER-NSE Survey

New Delhi: Economic activity continued to show dynamism in the second quarter of 2024-25, though at a moderated pace, according to the NCAER-NSE Business Expectations Survey. The survey said after improving for two consecutive quarters, business sentiments moderated in the second quarter of 2024-25 (134.3) compared to the first quarter (149.8) as well as the corresponding quarter of 2023-24 (140.7).

"While all four components of the Business Confidence Index (BCI) experienced slight moderation in sentiments between the first and second quarters of 2024-25, the percentage share of positive responses remained well above 50 per cent, signalling continued economic dynamism, " said the survey.

In the second quarter, 62.1 per cent of firms expected that overall economic conditions would improve in the next six months, while 58.0 per cent expected their financial positions to improve during the same period.


The capacity utilisation was 'close to or above optimal level' for 96.3 per cent of the surveyed firms in Q2.

According to the survey, the majority of respondents (67.1 per cent of firms) expected production to increase in the next six months and 71.5 per cent expected domestic sales to go up during the same period.

Similar trends were witnessed regarding 'expected new orders' over the next six months, it said.

The survey said sentiments about exports of final products continued to remain upbeat, even though a relatively smaller number of firms expected them to increase over the next six months.

Likewise, a significant number of the firms also expected no changes in the unit costs of raw materials, electricity and labour, it said.

The survey was carried out in September 2024, covering 493 firms in six cities spread across all four regions of the country.