Guess what is the most optimistic sector in Singapore

Its net profits scored 20ppt in a study.

According to Dun & Bradstreet (D&B) Singapore’s latest Business Optimism Index (BOI) study, all 6 leading business indicators have risen into the expansionary region for the second quarter of 2013. 

A marked contrast from the previous quarter with only 2 of 6 leading business indicators in the expansionary region, local business leaders are upbeat about the local economy in the coming quarter. 

For the second quarter, strong increases were seen in volume of sales, net profits and employment levels. Optimism levels in volume of sales have soared from -5.1 percentage points to 17.5 percentage points.

Employment expectations ranked second as optimism levels climbed from 5.8 percentage points to 15.5 percentage points. Net profits have also moved into the expansionary region from -1.6 percentage points to 11.6 percentage points.

Meanwhile, inventory levels and selling prices have reported modest increases, both at 5.9 percentage points and 0.9 percentage points respectively. New orders for the manufacturing sector are likely to increase by 50 percentage points this quarter. 

The services sector has emerged as the strongest sector with an increase seen across all 5 leading business indicators. Of the 5 indicators, the services sector scored well in expected volume of sales, net profits, selling prices and employment levels at 25.7 percentage points, 20 percentage points, 17.1 percentage points and 14.3 percentage points respectively.

Inventory levels have also risen to 5.7 percentage points. The stronger showing follows reports of higher business receipts and growth within the sector, particularly in the area of information and communications and education services. 

Recent reports of an increase in tourist arrivals have also contributed to positive sentiments within the sector. 

“Growing strength in the jobs landscape has certainly contributed to the improved levels in optimism here. The recent announcement made in Budget 2013 is a further testament to the government’s relentless focus on raising productivities by adopting a sectoral and targeted approach.

This bodes well for business leaders in Singapore as the new strategies and measures will help cushion the impact of rising business costs to some extent.” said Ms. Audrey Chia, D&B Singapore’s Chief Executive Officer.