Service firms see sluggish growth in Q2

The service industry saw revenues rise by only 1.1 per cent in the April to June quarter, according to data released yesterday by the Statistics Department.
The service industry saw revenues rise by only 1.1 per cent in the April to June quarter, according to data released yesterday by the Statistics Department. ST PHOTO: LIM YAOHUI

Growth in the service industry was almost flat in the second quarter, with takings ticking up just 0.4 per cent over the same quarter a year earlier.

Performance was patchy across the industry, with some segments faring better than others, going by the service business receipts index released yesterday by the Statistics Department.

The health and social service cluster logged the largest expansion in the April to June quarter, growing 7.7 per cent year on year. Takings in the financial and insurance service segment, which had been a strong performer in previous quarters, were almost flat and inched up just 0.4 per cent from a year earlier.

In information and communications and education, companies also enjoyed a rise in income year on year.

However, other segments did less well. Recreation and personal services suffered a 1.6 per cent slide in revenues, while business services and transport and storage recorded declines of 0.3 per cent and 2.2 per cent respectively.

Based on the data, the quarter saw service takings rise 1.1 per cent above what was posted for the preceding three months.

Quarter-on-quarter data, which was not adjusted for seasonal factors, showed growth across all segments except the education and financial and insurance sectors.

Yesterday's data excluded wholesale and retail trade, and accommodation and food services.


Chia Yan Min

A version of this article appeared in the print edition of The Straits Times on August 27, 2016, with the headline 'Service firms see sluggish growth in Q2'. Print Edition | Subscribe