SINGAPORE: Business sentiment in Singapore has hit a high note, marking its most optimistic outlook since 2023, according to a recent study conducted by the Singapore Commercial Credit Bureau (SCCB).
Singapore Business Review reports that the study indicates a significant surge in businesses’ confidence about sales volumes and net profits for the second quarter of 2024, marking a one-year high.
The SCCB’s Business Optimism Index, a measure of business confidence, has increased by 4.82 percentage points(pp) compared to the previous quarter, reaching a level not seen in the past year.
This uptrend marks the third consecutive quarter of growth, suggesting a sustained positive trajectory in the business landscape.
The index has also shown improvement compared to the same quarter last year, surpassing the figures by 4.6 percentage points(pp).
The study highlights six key indicators that have influenced this surge in optimism. Businesses are particularly bullish about their sales volume, showing a significant increase of 3.7 percentage points(pp).
Similarly, there is a marked uptick in confidence regarding net profits, which have surged by 4.44 percentage points(pp).
However, not all indicators have seen such optimistic gains. The study indicates a more subdued outlook in selling prices, new orders, employment, and inventory levels.
Selling prices, in particular, has witnessed a decrease of 10.37 percentage points(pp). New orders, employment, and inventory levels also saw decreases of 5.93, 7.41, and 2.99 percentage points (pp), respectively.
Despite these mixed sentiments, certain sectors stand out as most optimistic. The construction and transportation sectors lead the charge, reporting positive indicators across five key areas.
The services sector, with four positive indicators, followed closely behind, while the wholesale sector trails with two. /TISG