Transportation, Construction, and Finance Lead Optimistic Sectors
Singapore’s business sentiment has remained on the rise for the fourth consecutive quarter, according to a recent survey by the Singapore Commercial Credit Bureau (SCCB). The business optimism index increased modestly to +4.94 percentage points in Q3 2024, from +4.82 percentage points in Q2. This marks a notable improvement compared to +3.98 percentage points in the same period last year.
The index is based on feedback from 200 business owners and senior executives across major sectors, including transportation, construction, finance, and manufacturing. Key indicators such as sales volume, selling prices, new orders, and employment levels continued to show positive growth. Notably, the construction, transportation, and financial sectors reported the highest levels of optimism, with at least four out of six indicators showing positive results for each.
However, the manufacturing sector showed more subdued sentiment, with both sales volume and net profit dipping into the contractionary zone. The wholesale sector, on the other hand, saw slight improvements, as sales volume and net profit rebounded from a negative stance.
Despite the positive outlook, SCCB CEO Audrey Chia pointed out that external risks, particularly geopolitical tensions, remain a concern. The overall business environment for Q3 2024 is expected to remain upbeat, particularly for sectors tied to external demand, such as wholesale trade.
