Singapore services firms maintain optimism levels from a quarter ago

FIRMS in Singapore's services sector remain as upbeat about their short-term business prospects as they were a quarter ago. On a year-ago basis, however, optimism has dropped far lower.

A net weighted balance of 2 per cent of services firms are sanguine about their business prospects for H2 2015. The positive magnitude is comparable with the 3 per cent registered a quarter ago, but much lower than the 13 per cent posted for the same period last year.

The net weighted balance reflects the difference between the proportion of optimistic and pessimistic firms.

Overall, 17 per cent of the 1,500 enterprises polled by the Department of Statistics (DOS) between June and mid-July say business prospects look better for the six months till December, compared with the previous six months.

They marginally outnumber the 15 per cent foreseeing slower business. The rest - 68 per cent - project no change.

All industries, save real estate (negative 19 per cent) and wholesale trade (negative 5 per cent), expect better business conditions for H2 2015.

"Developers continue to cite the series of government measures, including the Additional Buyer's Stamp Duty (ABSD) and the Total Debt Servicing Ratio (TDSR) framework, as the reasons for their negative outlook," said DOS on Friday.

On the other hand, prospects look brightest for the food & beverage services sector, with a net weighted balance of 21 per cent.

The accommodation industry's 14 per cent net weighted balance reflects optimism from hotels. They expect the upcoming Formula One night race and year-end holiday period to boost business volumes.