Singapore’s business news update:
Singapore’s business sentiment continued its upward trend for the fourth consecutive quarter in Q3, as reported by the Singapore Commercial Credit Bureau (SCCB) on Monday (June 10).
The business optimism index rose modestly to +4.94 percentage points in the third quarter of this year, up from +4.82 percentage points in Q2. Annually, the index for Q3 was also higher than the +3.98 percentage points recorded in Q3 2023.
Indicators for sales volume, selling price, new orders, and employment levels remained expansionary, similar to the previous quarter. Additionally, the decline in inventory levels narrowed to -1.48 percentage points in Q3 2024, from -2.99 percentage points in the prior quarter.
Three out 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. Annually, both sales volume and net profit increased to +5.93 percentage points in Q3, from +2.99 percentage points in the same period last year.
SCCB noted that the construction, transportation, and financial industries were the most optimistic, with at least four out of six indicators positive in each sector. Sentiments in the manufacturing sector remained relatively subdued, with only two of six indicators in positive territory. Volume of sales and net profit each declined to -3.85 percentage points in Q3 2024 from 0 percentage points in Q2 2024, entering the contractionary zone.
The wholesale sector reported slightly improved sentiments in Q3 2024, with three of six indicators in positive territory. Both volume of sales and net profit rebounded to +6.67 percentage points in Q3 2024, from -6.67 percentage points in Q2 2024. The outlook for the services sector also remained positive, with three of six indicators showing growth.
SCCB CEO Audrey Chia highlighted a relatively optimistic outlook for local businesses in Q3 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 due to a pickup in external demand both regionally and globally.
“However, downside risks such as escalating geopolitical tensions and vulnerabilities will likely remain,” Chia added.
