Singapore business confidence hits one-year high in Q2 2024: SCCB

LOCAL business sentiment continues an upward trajectory, hitting a one-year high in the second quarter of 2024.

Data from the Singapore Commercial Credit Bureau (SCCB) released on Monday (Mar 11) showed that the Business Optimism Index rose for the third consecutive quarter in Q2 to +4.82 percentage points, from +4.48 percentage points in Q1 2024.

On the year, the index for the quarter was also higher than the +4.60 percentage points in Q2 2023.

Similar to the previous quarter, indicators of sales volume, net profit, selling price, new orders, and employment level stayed expansionary, while inventory level fell further to -2.99 percentage points in Q2 2024 from -2.24 percentage points in Q1 2024.

Three of six indicators have improved on a quarter-on-quarter basis, namely sales volume, net profit and new orders, while selling price and employment level moderated.

On the year, sales volume jumped to +3.70 percentage points from +1.49 percentage points in Q2 2023. Net profit increased to +4.44 percentage points from 0 percentage point. Inventory level, though in the contractionary territory, improved to -2.99 percentage points from -4.48 percentage points.

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Selling price fell to +10.37 percentage points in Q2 2024 from +14.18 percentage points a year ago. New orders declined to +5.93 percentage points from +8.96 percentage points in Q2 2023, and employment levels fell to +7.41 percentage points from +7.46 percentage points in Q1 2024.

On a sectoral perspective, similar to the previous quarter, the construction and transportation sectors have emerged as the most optimistic sectors with at least five of the indicators in positive territory.

The outlook for the financial and manufacturing sectors has improved slightly as three of the six indicators rose. Business sentiments within the services sector remained upbeat, with four of the six indicators positive.

Sentiments within the wholesale sector remained weak, with two of six indicators in positive territory, as with Q1. The sector’s indicators of sales volume, net profit and new orders all dropped in the quarter.

SCCB’s chief executive Audrey Chia noted an upbeat outlook for local business in the second quarter.

“We are seeing a sustained growth in the construction and transportation sectors, as well as a rebound in both manufacturing and financial sectors from the previous quarter.

“However, downside risks in global supply chains are likely to remain in light of ongoing geopolitical tensions and subdued growth within the wholesale trade segment,” said Chia.