Business Sentiment Stabilizes Despite Declining Orders
A recent survey from Business Times-Singapore University of Social Sciences (BT-SUSS) reveals that Singaporean firms are feeling less pessimistic about the second half of 2023, despite ongoing challenges. Though business performance remained stable in Q2, with profits and sales holding steady, the outlook for new orders showed a marked decline.
The net balance for orders decreased significantly by 17 percentage points, dropping to -38%, indicating a contraction in new business. The net balance metric tracks the difference between firms reporting increases versus decreases in key business indicators, with negative values pointing to a downturn.
Despite the ongoing challenges in securing new orders, there is optimism for a GDP pickup in the third quarter, as consultants believe the contraction in the manufacturing sector is nearing its bottom. While external demand remains weak, the overall sentiment suggests a gradual recovery in the second half of the year.
