SG sees business confidence up for 4th consecutive quarter
Local business sentiment remained in a positive direction for the fourth consecutive quarter.
The index of business optimism rose modestly, to 4.94 percent points for the third quarter in 2024 from 4.82 percent points during the prior quarter.
The index is based upon a business sentiment survey that Singapore Commercial Credit Bureau (SCCB) conducts every quarter. The survey involves 200 business owners and top executives from major industries. The survey asks participants about their hopes and expectations in six areas of business: Sales Volumes (volumes of sales), Net Profits (net profits) and Selling Prices (selling prices) and New Orders (new orders) as well as inventories and Employment levels.
Year-to-year, the index for this quarter was also more than 3.98 percentage points recorded in the third quarter of 2023.
Transportation, construction and financial sectors showed the highest levels of optimism and at least four out of six indicators indicating positive.
The mood in the manufacturing industry remained relatively downbeat and only two of the six indicators in positive territory.
Volume of sales and net profit both fell to minus 3.85 percentage points for the third quarter of 2024 from 0 percentage point in the second quarter, reaching the zone of contraction.
The wholesale sector reported moderately improved sentiments for the third quarter in 2024 Three of the six indicators in positive territory.
Sales volume and Net Profit rebounded to 6.67 percentile points in the third quarter of 2024, up from minus 6.67 percentile points in the preceding quarter.
The indicators for three of the six that describe the sector are positive.
The third quarter of 2024 should be a bit more optimistic for local businesses.
The sectors of finance and services are positive, despite the continuing growth of transportation and construction industries. The sectors that are geared towards external demand, such as retail trade and wholesale trade, are also optimistic due to the rising demand in the global market.
Risks to the down side, such as rising security and geopolitical tensions are likely to remain.
Indicators of sales volumes, selling prices, new orders and employment levels remained expansionary as in the previous quarter.
On the other hand the decrease in inventory levels decreased to minus 1.48 percentage points for the third quarter in 2024, down from the minus 2.99 percentage points during the previous quarter.
Three indicators were improved over a quarter-on-quarter basis, namely net profits, sales volumes and employment levels, whereas the selling price and new orders slowed.
Sales volume and net profits both increased by 5.93 percentages points on the year in the third quarter as when compared to 2.99 percentages points during the prior quarter.
New orders edged up to 5.19 percentage points in the third quarter in 2024 from 4.48 percentage points in the third quarter of 2023. Meanwhile, employment were up to 6.67 percentage points in the third quarter in 2024, up from 4.48 percentage points the year before.
The 3rd quarter of 2024 saw an increase in the price of selling to 7.41 percent from 11.19 percent the year before.
