Strong Optimism in Construction and Transportation Sectors Despite Global Risks
Business sentiment in Singapore has reached its highest level in a year, with the Business Optimism Index (BOI) rising for the third consecutive quarter, according to data from the Singapore Commercial Credit Bureau (SCCB). The index climbed to +4.82 percentage points in Q2 2024, up from +4.48 in Q1 2024 and +4.60 in Q2 2023.
Key indicators such as sales volume, net profit, and new orders showed positive growth, although selling prices and employment levels experienced slight moderation. Inventory levels continued to decline, falling further to -2.99 percentage points from -2.24 in Q1 2024.
Sector-wise, construction and transportation emerged as the most optimistic industries, with at least five key indicators in positive territory. Meanwhile, financial and manufacturing sectors saw slight improvements, while services maintained strong business confidence. The wholesale sector remained weak, with only two out of six indicators showing growth.
SCCB Chief Executive Audrey Chia noted the continued strength in Singapore’s economy but cautioned that global supply chain risks and geopolitical tensions could pose challenges in the coming months. Despite these uncertainties, the steady upward trend in business confidence signals resilience in key industries.
