Guess what is the least optimistic sector in Singapore right now

It expects a decline in inventory levels.

As the global economy gathered steam and gained traction towards the end of 2013, local business confidence remained on the path of optimism for the first quarter of 2014.

According to Singapore Commercial Credit Bureau’s latest Business Optimism Index (BOI) study, all 6 business indicators have remained in the expansionary region.Ranking atop the list of industries under study, the wholesale, transportation and services sectors are the most optimistic with all 5 business indicators in the expansionary region.

Meanwhile, the mining sector is the least optimistic sector as the industry has anticipated a status quo in volume of sales, net profits, selling price and employment as well as a decline in inventory levels.

Here's more:

Despite the upbeat sentiments resulting mainly from a strengthening external demand, local firms are still cautious about their business expectations. The study revealed that strong signs of moderation were highly evident.

Following a sharp increase in overall optimism levels last quarter, business expectations have plateaued from +33.98percentage points to +13.13 percentage points this quarter. This also stands in sharp contrast to the same quarter a year ago when overall BOI score hit the contractionary region at net -0.82 percentage points.

For the first quarter of 2014, local firms have expressed the most optimism in volume of sales and net profits. According to Singapore Commercial Credit Bureau, net optimism levels in volume of sales has moderated from 50.8 percentage points in Q4 2013 to 20.3 percentage points in Q1 this year.

A similar trend was also observed for net profits as it moderated sharply from 44.1 percentage points last quarter to 17.5 percentage points this quarter. Meanwhile, inventory levels are expected to climb to a net optimism of 11.9 percentage points while employment is also likely to increase to 10.5 percentage points.

Businesses are least optimistic about selling prices as net optimism levels increased modestly to 6.3 percentage points, compared to a relatively higher 16.7 percentage points last quarter.

Following improved sentiments in new orders last quarter, manufacturers are cautiously optimistic about new orders as it moderated from 26.7 percentage points in Q4 last year to 9.7 percentage points in Q1 this year. Owing to the spillovers inweaker production and slow orders towards the end of Q4 last year, manufacturing activities are likely to ease in the next few months.

Ranking atop the list of industries under study, the wholesale, transportation and services sectors are the most optimistic with all 5 business indicators in the expansionary region. With double digit expansions experienced by domestic wholesale trade in electronic components, industrial and construction machinery last year, the outlook for the wholesale trade sector will likely be optimistic this quarter.

Sustained growth in the services industry, particularly business, insurance and financial services have accounted for the positive outlook within the sector. The accommodation and food services sectors are also anticipating higher business receipts from the annual Lunar New Year festivities in the first quarter of 2014.

Meanwhile, the transportation sector is likely to benefit from an increasing demand for private transportation services as well as the operation and maintenance of roads, bridges and expressways.

The mining sector is the least optimistic sector as the industry has anticipated a status quo in volume of sales, net profits, selling price and employment as well as a decline in inventory levels.