MUMBAI: India’s business confidence rose only slightly in October, despite a bigger-than-expected rate cut from the Reserve Bank of India (RBI), as worries about weak demand continues to impact sentiment, a private survey showed on Tuesday.

The MNI India Business Sentiment Indicator rose to 62.3 in October from a more than a one-and-a-half year low of 61.4 in September, according to MNI Indicators, which is part of Deutsche Borse Group.

MNI said manufacturing and construction companies had reported a rise in sentiment, but noted confidence among service sector companies fell for a fourth consecutive month despite the Reserve Bank of India’s rate cut on September 29.