Business Confidence Improves Despite Ongoing Decline in Orders
Singaporean businesses are feeling more optimistic about their prospects for the second half of 2023, according to the latest Business Times-Singapore University of Social Sciences (BT-SUSS) Business Climate Survey. The survey indicates that firms’ outlooks have improved, despite continued declines in new orders in the second quarter.
Business performance in Q2 showed some signs of stabilization, with key performance indicators such as profits and sales holding steady. However, the net balance for new orders saw a significant drop, falling 17 percentage points to -38%, signaling ongoing challenges in securing new business. The net balance represents the difference between firms reporting an increase and those reporting a decrease in orders.
Despite these challenges, consultants remain hopeful for the third quarter, anticipating that Singapore’s GDP will pick up, driven by signs that the manufacturing sector’s contraction may have reached its bottom. This optimism is tempered by caution, as businesses continue to navigate uncertainties, including weak external demand and ongoing global economic risks.
