Services sector bullish on business outlook for H2

A net weighted balance of 5% of firms expect favourable conditions.

After a dismal outlook for the past periods, the services sector in Singapore is now expecting bright days ahead, seeing a more favourable business conditions for the next few months until the end of the year.

According to the Business Expectations survey released by the Department of Statistics, a net weighted balance of 5% of firms in the sector forecasts more positive business environment from July to December this year.

This is an improvement from the net weighted balance of -1% recorded in the previous survey, and -6% recorded for the same period last year.

Within the sector, food & beverage and accommodation firms are the most optimistic and upbeat. The better outlook is due to the year-end festive season.

"Hoteliers also foresee better business due to the upcoming Formula One night race in September 2017," the survey stated.

The financial & insurance industry also reported an optimistic business outlook. Within the segment banks and firms expect an increase in demand for their services.

On the other hand, the transport & storage industry is the least optimistic, particularly the firms engaged in cargo handling and warehousing & storage services.

Players from retail trade are also expecting things to worsen.