Business sentiment in Singapore turning positive: Poll
Firms expect improved sales volumes, net profit and employment levels for April to June
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While the quarterly Business Optimism Index marked its first positive reading after four straight quarters in negative territory, optimism was limited to the financial, manufacturing and wholesale sectors. Sentiments for construction and transportation remained downbeat.
PHOTO: AGENCE FRANCE-PRESSE
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Singapore companies are looking at the second quarter with bullishness they had not expressed in the past 12 months, a survey has found.
Local businesses are expecting improved sales volumes, net profit, selling prices, new orders, inventory and employment levels in the April to June period, Singapore Commercial Credit Bureau's (SCCB) quarterly Business Optimism Index (BOI) showed yesterday.
But the optimism was limited to the financial, manufacturing and wholesale sectors, while sentiments for construction and transportation remained downbeat.
The BOI rose to 3.94 percentage points from -1.03 percentage points in the previous quarter, to mark the first positive reading after languishing in negative territory for four straight quarters.
The index registered -7.88 percentage points for the same quarter last year.
The survey, released every quarter, is based on responses from 200 business owners and senior executives representing major industry sectors across Singapore.
It indicates the level of business confidence and sentiments that can be used to assess turning points in economic activity.
SCCB, which operates under data provider Dun & Bradstreet Singapore, was established in 2005.
The bureau's chief executive Audrey Chia said: "The outlook for local businesses has shown signs of further recovery."
Financial services, wholesale trade and manufacturing have, in particular, continued to experience sustained growth and demand, she said.
The BOI showed that the financial sector had the most optimistic outlook, with all six indicators in the positive zone.
The outlook for the manufacturing sector remained relatively upbeat, with five of the six indicators in positive territory. Sentiments within the wholesale sector were also optimistic.
This echoes last month's Singapore Purchasing Managers' Index (PMI) data that showed factory activity recording its eighth straight month of expansion.
The PMI for the electronics sector also held within expansion territory for the seventh month.
The manufacturing PMI and the electronics sector PMI are compiled by the Singapore Institute of Purchasing and Materials Management.
In the service sector, three of the indicators - sales, profit and new orders - signalled expansion.
Ms Chia said the outlook for the construction and transportation sectors remained muted due to weakness in building activities and a slower pace of border reopenings amid a global surge in Covid-19 cases and a more contagious strain of the virus.
While sentiments in construction improved slightly, with selling prices making their way into positive territory, most of the other indicators were still negative.
Sentiments within the transportation sector remained weak with four of the six indicators in negative territory.
