Singapore business confidence rises for 4th straight quarter: Singapore Commercial Credit Bureau

Source: The Straits Times

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 in the third quarter in 2024, from +4.82 percentage points in the second quarter.

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 -3.85 percentage points in the third quarter in 2024 from 0 percentage point in the second quarter in 2024, entering the contractionary zone.

The wholesale sector reported slightly improved sentiments in 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 in the third quarter in 2024, from -6.67 percentage points in the second quarter in 2024.

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 this year.

"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 volume, selling price, new orders and employment level remained expansionary like in the previous quarter. On the other hand, the decline in inventory level narrowed to -1.48 percentage points in the third quarter in 2024, from -2.99 percentage points in the previous quarter.

Three of six indicators improved on a quarter-on-quarter basis, namely sales volume, net profit and employment levels, while selling price and new orders moderated.

On the year, both sales volume and net profit climbed to +5.93 percentage points in the third quarter, from +2.99 percentage points in the year-ago period.

New orders edged up to +5.19 percentage points in 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 in the third quarter in 2024 from +4.48 percentage points in the year before.

Selling price fell to +7.41 percentage points in the third quarter in 2024 from +11.19 percentage points in the prior year. THE BUSINESS TIMES