Singapore business confidence weakens in Q2: SCCB

A view of the financial district highrise buildings in Singapore (Photo: AFP/VNA)

Singapore (VNA) – Singapore’s business outlook for the second quarter of 2023 has darkened again, weighed down by negative sentiment in the manufacturing and wholesale trade sectors, according to the latest Business Optimism Index (BOI) released by the Singapore Commercial Credit Bureau (SCCB).

The BOI fell to 4.6 percentage points in Q2 from 4.73 percentage points in the previous quarter. This was the fifth consecutive quarter of declining local business sentiment, although the drop was slight, SCCB noted.

The outlook for local businesses has deteriorated slightly owing to a slowdown in the manufacturing and wholesale trade sectors, said SCCB chief executive Audrey Chia.

She went on to say that the outlook is uncertain as rising interest rates, latent vulnerabilities of the global financial system and escalations in geopolitical tensions are likely to weigh on overall business confidence in the coming months.

Two out of six indicators saw improvements compared to the same period last year, namely selling prices and new orders. All other indicators – volume of sales, net profits, inventory levels and employment levels – declined.

The construction, financial, services and transportation sectors have emerged as the most optimistic sectors for the second quarter of this year.

All six outlook indicators for the construction sector were in positive territory, while five of six indicators saw expansion for the financial, services and transportation sectors.

Singapore is an open economy, therefore, external factors will have a significant impact on the business prospects of this country.

The BOI is released quarterly as a measure of business confidence in the economy by SCCB./.