Business sentiment up for 3Q 2024

SINGAPORE: Business sentiment for the third quarter of the year is up, the Singapore Commercial Credit Bureau (SCCB) said on Monday (Jun 10).

This is the fourth quarter in a row, showing that local firms are more optimistic about business conditions.

The business optimism index rose from +4.82 percentage points in Q2 to +4.94 for the third quarter of the year. The numbers are also higher year-on-year, as the index was at +3.98 percentage points in the third quarter of 2023.

This is based on a survey conducted by the SCCB of 200 business owners and senior executives across major industry sectors every quarter.

The index tracks six indicators: sales volume, net profits, selling price, new orders, inventory levels, and employment levels.

Among these, three showed improvement in the third quarter: volume of sales (+5.93 percentage points from +3.70 percentage points), net profits (+5.93 percentage points from +4.44 percentage points), and investor levels (-1.48 percentage points from -2.99 percentage points).

The construction and transportation sectors show the most optimism in the coming quarter, with five out of six positive indicators.

The financial industries closely followed this, with four out of six indicators showing improvement.

Meanwhile, the wholesale sector was positive in three of the six indicators, improving over the past quarters. Similarly, the services sector also had three positive indicators.

The manufacturing sector, however, lagged somewhat behind, being positive in only two of the six indicators.

Similar to the year’s second quarter, indicators of sales volume, selling price, new orders, and employment level have remained expansionary.

Additionally, inventory levels decreased by -1.48 percentage points for the third quarter, compared to -2.99 percentage points in the second quarter of this year.

Sales volume, net profit, and employment levels have improved for the third quarter, though selling prices and new orders have moderated.

“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,” Business Times quotes SCCB chief executive Audrey Chia.

In March, the SCCB noted that business sentiment in Singapore was at its most optimistic since 2023. /TISG

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