MSME Sector: Micro Small and Medium Entreprises' sentiment overall positive, says CriSidEx

The sentiment among the Micro Small and Medium Entreprises (MSMEs) is overall positive but in the quarter ended March 31, it has been found moderate by CriSidEx  (CRISIL-SIDBI MSE Sentiment Index) — a platform that monitors the small and medium business. There was a moderation in sentiment among micro and small enterprises (MSEs) during the quarter ended March 31, 2019, the 6th CriSidEx survey shows. At 122, the CriSidEx score for January-March 2019 was lower than the 128 seen in October-December 2018, but marginally up from 121 a year back.

Amish Mehta, Chief Operating Officer (COO) at CRISIL Ltd, “Sentiment in the March quarter was shaped by a host of factors such as slowdown in auto sales leading to inventory pile-up and production cuts by the automobile industry; slower tendering/awarding ahead of elections affecting the engineering goods sector; and, regulations impacting logistics.”

At a parameter level, the share of positive respondents in manufacturing remained steady while the services sector reported a small increase in order-book size. Both sectors reported a decrease in the share of positive respondents in employee base compared with the previous quarter.