Mixed outlook as sectors like construction, tourism, and manufacturing continue to grow
According to the Singapore Commercial Credit Bureau (SCCB), business confidence in Singapore continues its recovery into the first quarter of 2024, driven by a rebound in sectors such as construction, tourism, and manufacturing. The Business Optimism Index rose slightly to +4.48 percentage points for Q1 2024, marking a second consecutive quarterly increase, up from +4.35 percentage points in Q4 2023. While still lower than the +4.73 percentage points in the same period last year, the index reflects a recovery from the two-year low recorded in Q3 2023.
The positive sentiment stems from continued growth in sales volume, net profits, selling prices, new orders, and employment levels, while inventory levels remain in negative territory. Only selling prices and new orders showed improvement on a quarter-on-quarter basis.
Sector-wise, the construction and transportation sectors lead in optimism, with at least five of the six key indicators in positive territory. Financial and manufacturing sectors have also improved, with more positive indicators. Services sector sentiment remains upbeat, with four of the six indicators in positive territory. In contrast, the wholesale sector remains weak, with only two positive indicators.
SCCB’s CEO Audrey Chia emphasized that the Q1 2024 outlook for local businesses remains cautiously optimistic, despite global economic risks and ongoing geopolitical challenges. Growth in construction and tourism, along with a slight rebound in manufacturing, particularly in electronics and semiconductors, is expected to support this optimism.
