1 in 2 Singapore firms failed to boost sales in Q2: survey

But corporate sentiment remains upbeat.

Despite a dearth in sales increases, Singapore’s business sentiment index remained flat with a robust score of 67, a survey by Thomson Reuters and INSEAD revealed.

According to the Asia Business Sentiment Survey, two out of six respondents showed a positive outlook while the rest remained neutral.

However, only three of six companies said new orders and sales increased in Q2 compared with eight of nine respondents in Q1.

Within the region, companies remain optimistic as business sentiment among Asia’s top companies hit its highest level in more than two years in 2Q 2014.

The ThomsonReuters/INSEAD Asia Business Sentiment Index jumped to 74 in the second quarter from 64 in the first, the highest reading since the start of 2012. A reading above 50 indicates an overall positive outlook.

Here’s more from the Thomson Reuters/INSEAD Asia Business Sentiment Survey:

Leadership change gave India and Thailand sorely-needed shots in the arm, with the two key markets powering a rise in the wider index. Robust scores from China and Australia also helped lift the index with scores of 67 and 79 respectively, both up significantly from the previous quarter.

Export-driven South Korea saw a steep drop to 50 from 67 in the first quarter on weaker trade and consumer data. Japan and Malaysia edged down slightly, while Singapore and the Philippines held flat, although the Philippines still maintained its 100 reading, the same as in the first quarter.

Of the 124 companies that responded 52.42 percent said they had a neutral outlook and 47.58 percent said they had a positive outlook in the second quarter of 2014. None reported a negative outlook, the first time ever in the survey's history.

Positive trends for key trade partners gave Asia a boost, said Simon Shakesheff, Sydney-based group executive for strategy and stakeholder relations at Australian property group Stockland Corp Ltd. "Business confidence has been buoyed by a broad improvement in the global environment, especially some increased optimism with regards to the outcome of Europe, the U.S. looking quite respectable and Japan travelling better than expected," he said.