Business Optimism Index Sees 15.1% Decline

Mumbai: Dun & Bradstreet, a global leader in business decisioning data and analytics, released the Business Optimism Index for Q1 2025, which stands at 114.4, marking a 15.1% decline compared to Q4 2024. The decline reflects a cooling of business sentiment following the festive-driven peak in the previous quarter.

Several key parameters have shown a decline in optimism, signalling a cautious sentiment among businesses as they adjust to post-festive season conditions and global economic uncertainties. The Dun & Bradstreet Business Optimism Index, which has been tracking the changing business sentiment of India Inc. since 2002, continues to serve as a leading indicator of India’s economic growth, maintaining a strong correlation of approximately 80% with the GDP.

Optimism for sales volume moderated by 23 percentage points compared to the previous quarter, while export orders declined sharply by 41 percentage points, particularly in sectors like construction and hospitality, indicating challenges in global demand.