Most of the services sector optimistic for the 2nd quarter in a row

The retail trade and accomodation sectors, however, remain shrouded in negative sentiment.

More businesses in the services sector have an improved outlook for the coming two quarters.

According to the second quarter Business Expectations Survey for the Services Sector, a weighted balance of 11% of firms are predicting a more favourable business outlook for the coming 6 months.

However, this is not visible in all sectors of the economy. The retail trade sector recorded a -18% business sentiment, while the accomodation sector recorded a -20%, expecting weaker business conditions ahead.

The most optimistic sectors are information & communication (23%), finance & insurance (15%) and wholesale trade (13%).

A net weighted balance of 9% of firms expect operating receipts to increase for the 2nd quarter compared to the first quarter.

This is particularly high in the food and beverage sector, at 17%, as more employees return to their workplaces.

Low turnover due to travel restrictions continue to drag the accomodations sector, which forecast a 27% decrease in operating receipts for the second quarter.

In terms of employment, the services sector expect a net weighted balance of 6% increase in hiring activity for the second quarter.

Top expected hirers include the recreation, community & personal services industry, and the information & communications industry.

Conversely, the accomodations industry expect a 5% decrease in employment for the second quarter due to weak demand.