The second quarter survey also reveals that expectations for sales revenues for Q3 2015 are as predicted a year ago, but weaker when compared to the previous quarter. The net balance for sales revenues is at a positive 29% for Q3 2015, the same level as in Q3 2014, but less than the 45% for Q2 2015. In terms of the proportion of respondents anticipating an increase in revenues, 47% foresee higher revenues during Q3 2015 versus 45% for Q3 2014 and 53% for Q2 2015.
Over 79% of the firms expected “no change” in their selling prices during Q3 2015. However, 12% of the participants anticipate an increase owing to an underlying rise in the cost of raw materials. A select proportion of respondents have indicated that they intend to increase selling prices to take advantage of good business prospects in the near term.
The seasonal dip in sentiments is underlined by the outlook for sales volumes as 21% of firms, mostly retailers, anticipate a decline due to lower customer footfalls, particularly as locals and residents tend to be on vacation during this period. On the other hand, 48% respondents expect higher volumes during Q3 2015, attributed to new projects and customers from both domestic and export markets and higher demand for certain goods and services during the festival season.
While 47% of the respondents expect higher net profits during the third quarter of 2015 driven by new orders and projects, 21% foresee weaker profits owing to slow market conditions. The outlook for hiring is moderate with 19% of all firms planning to increase their employee strength during Q3 2015 compared to 29% for Q2 2015 and 22% for Q3 2014.
A sector-wise comparison shows manufacturing being the most optimistic about sales volumes with 57% anticipating a rise and 25% expecting stability. However, 18% anticipate a decline due to slowing market conditions during the third quarter.
Within the services sector, construction firms are very optimistic with respect to volumes, with 66% respondents expecting an increase. Trading firms dealing in building material are also more confident about the third quarter compared to others. As expected, hotel & restaurants see lower demand in summer, with 32% anticipating a rise in volumes and 24% expecting a decline.
