Singapore business confidence up for 4th consecutive quarter
The local business climate is increasing for the fourth straight quarter.
The index for business optimism rose slightly to 4.94 percentage points for the third quarter of 2024 from 4.82 percentage points in the second quarter.
The index is based on an annual survey of business sentiment carried out by Singapore Commercial Credit Bureau. This survey involves 200 top business leaders and executives from the largest industries. They are asked about their expectations on six areas of the business, including Sales Volumes, Net Profits, Selling Price, New Orders, Inventories and Employment levels.
The index was higher by 3.98 percentage points than in the third quarter of 2023.
Transportation, construction and financial sectors showed the highest optimism, with at least four out of six indicators indicating positive.
The mood in the manufacturing industry were generally negative with only two indicators showing positive signs.
The volume of sales as well as net profit each fell to less than 3.85 percentage points for the third quarter in 2024, from 0 percentage points in the second quarter. moving into the contractionary zone.
The wholesale sector posted slightly improved sentiments for the third quarter of 2024 and three of the six indicators showing positive growth.
The volume of sales and Net Profit increased to 6.67 percentile points for the third-quarter in 2024 from the minus 6.67 percentile points in the previous quarter.
The indicators for three of the six that describe this sector are favorable.
A relatively upbeat outlook for local businesses in the third quarter of 2024.
The financial and service sectors are as well, despite continuing growth of the transportation and construction sectors. Sectors that are geared towards external demand, such as the wholesale trade industry are also feeling a little more optimistic in the light of an increase in demand from outside both globally and regionally.
Risks to the down side, such as rising geopolitical tensions and vulnerability are likely to remain.
The indicators of sales volume and selling price, as well as new orders, as well as the levels of employment were all still expanding like they did in the previous quarter.
On the other hand the decline in inventory decreased to less than 1.48 percentage points for the third quarter of 2024, compared to less than 2.99 percentage points during the previous quarter.
Three out of six indicators showed an improvement over the last quarter. They included sales volume, net profit and the level of employment. However, the selling price and the number of orders placed on hold were lower.
The year-over-year the volume of sales and net profit rose up to 5.93 percentage points for the third quarter, from 2.99 percentage points in the previous year’s period.
New orders increased to 5.19 percentage points for the third quarter in 2024 from 4.48 percentage points during the third quarter of 2023, while employment levels were up to 6.67 percentage points for the third quarter in 2024 from 4.48 percentage points the year before.
The 3rd quarter of 2024 witnessed decreases in the selling price to 7.41 percent, down from 11.19 percent in the year prior.