Singapore services sector revenue grows at slower 2.8% pace in Q2

The business services industry registered a 2.9 per cent quarter on quarter increase in business receipts, with firms engaged in professional services reporting an increase in takings.
The business services industry registered a 2.9 per cent quarter on quarter increase in business receipts, with firms engaged in professional services reporting an increase in takings.PHOTO: ST FILE

SINGAPORE - Growth in revenue for Singapore's services sector cooled further in the second quarter of this year, according to data released by the Department of Statistics on Tuesday (Aug 27).

Overall business receipts for the sector rose 2.8 per cent in Q2 compared to a year ago, down from 3.6 per cent growth in the first quarter of this year and 4.1 per cent growth in Q4 of 2018.

All the services industries registered higher revenues in the April to June period, with the transport and storage industry posting a 5.6 per cent year-on-year increase in takings, due to higher demand for water and air transport services.

The health and social services industry saw revenue growth of 4.2 per cent, on the back of higher business receipts from hospitals.

On a quarter-on-quarter, non-seasonally adjusted basis, business receipts dipped 0.1 per cent in the second quarter, as compared to a 0.4 per cent decline in the previous quarter, with performance mixed across the services industries.

The education as well as recreation and personal services industries reported a 10.6 per cent and 8.3 per cent decrease in revenue from the previous quarter respectively.

On the other hand, the transport and storage services industry saw a 4.1 per cent increase in revenue from Q1, lifted by firms in the water transport segment.

The business services industry registered a 2.9 per cent quarter on quarter increase in business receipts, with firms engaged in professional services reporting an increase in takings.

The Business Receipts Index, which excludes wholesale and retail trade, as well as accommodation and food services, measure short-term changes in the amount of business or operating receipts on a quarterly basis.