According to a new survey by the Confederation of Indian Industry (CII), the Business Confidence Index fell 5 points in the October-December quarter mainly due to higher input costs, costly borrowing and continuing uncertainty in the global economy.

The survey also found that Indian businessmen are beginning to see and end to the bad times. The fall of 5 points results in the total decline of 18 points following the third quarter of quarter of 2010-11.

The CII Business Confidence Index (CII-BCI) for the quarter till December 2011 fell to 48.6 from 53.6 in the previous quarter even as the pace of fall slowed in the quarter. The index has been falling since the last quarter of 2010-11 indicating a general economic slowdown in the industry.

"It's obvious that Industry's Outlook during the quarter has been poor, but hopefully 2012 would improve sentiments and outlook as we start seeing some positive developments including moderating inflation, a more accommodative monetary stance and hopefully a growth oriented budget," said Chandrajit Banerjee, director general, CII.

The CII survey included 250 companies and found that there has been a slowdown in sales new orders, production as well as earnings before tax in the quarter.