Singapore business confidence rises for 4th straight quarter: Survey
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The construction, transportation and financial industries were the most optimistic.
ST PHOTO: LIM YAOHUI
Hykel Quek
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SINGAPORE – Local business sentiment continued on an upward trend for the fourth consecutive quarter, the Singapore Commercial Credit Bureau (SCCB) said on June 10.
The business optimism index rose moderately to 4.94 percentage points for the third quarter in 2024, from 4.82 percentage points in the second quarter.
The index is based on a business sentiment survey that SCCB conducts every quarter, involving 200 business owners and senior executives representing major industry sectors. They are asked about their expectations on six areas of business: sales volumes, net profits, selling prices, new orders, inventories and employment levels.
Year on year, the index for the quarter was also higher than the 3.98 percentage points in the third quarter in 2023.
SCCB noted that the construction, transportation and financial industries were the most optimistic, as at least four out of six indicators were positive for each of these sectors.
Sentiments within the manufacturing sector remained relatively downbeat, with only two of six indicators in positive territory.
Both volume of sales and net profit each fell to minus 3.85 percentage points for the third quarter in 2024 from 0 percentage point in the second quarter, entering the contractionary zone.
The wholesale sector reported slightly improved sentiments for the third quarter in 2024, with three of six indicators in positive territory.
Both volume of sales and net profit rebounded from the contractionary zone to 6.67 percentage points for the third quarter in 2024, from minus 6.67 percentage points in the second quarter.
The outlook for the services sector also remained positive, with three of six indicators positive.
SCCB chief executive Audrey Chia noted a relatively upbeat outlook for local businesses in the third quarter in 2024.
“Apart from continued growth in the transportation and construction sectors, the financial and services sectors are optimistic. Externally oriented sectors such as the wholesale trade sector are also slightly more upbeat in the light of a pickup in external demand both regionally and globally.
“Downside risks such as escalating geopolitical tensions and vulnerabilities will likely remain,” she said.
Indicators of sales volumes, selling prices, new orders and employment levels remained expansionary as in the previous quarter.
On the other hand, the decline in inventory level narrowed to minus 1.48 percentage points for the third quarter in 2024, from minus 2.99 percentage points in the previous quarter.
Three of six indicators improved on a quarter-on-quarter basis, namely sales volumes, net profits and employment levels, while selling prices and new orders moderated.
On the year, both sales volume and net profit climbed to 5.93 percentage points for the third quarter, from 2.99 percentage points in the year-ago period.
New orders edged up to 5.19 percentage points for the third quarter in 2024 from 4.48 percentage points in the third quarter in 2023, while employment levels rose to 6.67 percentage points for the third quarter in 2024 from 4.48 percentage points in the year before.
Selling price fell to 7.41 percentage points for the third quarter in 2024, from 11.19 percentage points in the prior year. THE BUSINESS TIMES
