November, 2010 - CII

cii.in

November, 2010 - CII

eview

Coverage and Methodology

CII’s 74th Business Outlook Survey is based on a large

sample size of 150 companies covering all industry

sectors, including small, medium and large enterprises

from different regions. The survey also enumerated

responses across the spectrum of industry groups

both in the public and private sectors engaged in

primary sector, manufacturing activities and in the

service sector. 39% of the respondents were from small

enterprises while 24.0% and 27.0% were from medium

and large firms respectively. Sector-wise, 66.0% of the

respondents were from the manufacturing sector while

31.2% and 1.3% were from the services and primary

sector respectively.

The CII-BCI is calculated

as a weighted average

of the Current Situation

Index (CSI) and the

Expectation Index (EI),

with greater weight given

to EI as compared to CSI.

These indices are based

on three questions on

the performance of the

economy, respondent’s

industry sector and

respondent’s company. Respondents are asked to

rate the current and expected performance on a

scale of 0 to 100. A score above 50 indicates positive

confidence, while a 75+ score indicates strong positive

confidence.

In the construction of the two sub-indices, the highest

weight is given to questions related to the performance

of the individual company, and the lowest weight

is assigned to the questions on the economy. This

weightage is based on the premise that the average

respondent would possess more detailed and accurate

knowledge on the current and expected performance of

his own company than the economy as a whole.

28 | November 2010 Communiqué

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