The survey noted that the optimism for net profits stood at 48 per cent - a decrease of 21 percentage points as compared to same period last year, while optimism for new orders stood at 24 per cent - a decrease of 39 percentage points as compared to April-June 2019.
Singh further noted that the impact of Covid-19 started as a supply shock but has also triggered strong demand shocks and has led to the collapse of confidence levels.
"The ripple effects of this are evident across the financial sector. The deceleration in demand is expected to cause severe crunch in cashflows, increase in corporate debt levels could even lead to large scale credit defaults and trigger bankruptcies," Singh said.
The report further said that all six optimism indices like -- optimism for sales volumes, net profit, selling price, order book position, inventory and workforce size -- have registered a decline on a year-on-year basis.
The Dun & Bradstreet Business Optimism
Index is an indicator and is arrived at based on a quarterly survey of business expectations across companies from several sectors.