SINGAPORE: Singapore’s businesses are approaching the first quarter of 2024 with cautious optimism, as reflected in the latest survey by the Singapore Commercial Credit Bureau (SCCB).
The Business Optimism Index (BOI) has risen for six consecutive quarters, climbing from 5.06 percentage points in Q4 2023 to 5.45 percentage points in Q1 2024. This marks an improvement of 0.97 percentage points compared to the same period last year.
The survey highlights positive sentiment across most business indicators. Five out of six indicators are in expansionary territory, with firms expressing increased optimism about sales volume, net profits, new orders, and sales prices for the upcoming quarter.
However, inventory levels remain unchanged, maintaining a neutral position.
Sectoral performance reveals a mixed picture. Businesses in the construction, transportation, and financial services industries are the most confident about their prospects in the first quarter, buoyed by ongoing projects and favorable market conditions.
In contrast, the wholesale trade sector remains the most pessimistic, citing challenges such as fluctuating demand and cost pressures.
Despite the overall upward trend, businesses remain cautious amid external uncertainties and evolving economic conditions. The steady improvement in the BOI reflects measured optimism as companies navigate a complex and dynamic business landscape.