Local business sentiment at its most optimistic since 2023: study

Businesses are more optimistic about the sales volumes and their net profits for the quarter.

Business sentiment in Singapore rose to a 1-year high for Q2 2024, according to a study by the Singapore Commercial Credit Bureau (SCCB).

SCCB’s Business Optimism Index grew 4.82 percentage points (pp) in Q2 2024, from the 4.48 pp in Q1 2024. This represents growth for three consecutive quarters.

The index was also higher for the quarter compared to the 4.6 pp from the same quarter last year.

The six key indicators measured showed varying changes in optimism. Businesses are more optimistic in regard to sales volume (+3.7 pp) and net profit (+4.44 pp).

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In contrast, businesses have a more subdued outlook in regard to selling price (-10.37 pp), new orders (-5.93 pp), employment (-7.41 pp), and inventory level (-2.99 pp).

Amongst sectors measured,construction and transportation are the most optimistic sectors, reporting 5 positive indicators; followed by the services sector with 4, and the wholesale sector with 2.