SMEs more pessimistic on growth prospects in upcoming quarters: poll

Sales and profit are expected to weaken.

The level of business confidence among local SMEs dipped slightly in the Singapore Business Federation-DP Information Group SME Index for Q2 and Q3 of 2015.

The dampened outlook is mainly due to the lower sales and profit expectations of SMEs. Business confidence slipped slightly from 54.4 to 54.0.

The Index is a six-month forward-looking Index which measures the sentiments of SMEs. As a score above 50 indicates a positive sentiment, SMEs remain generally optimistic about their prospects for the next six months.

Lincoln Teo, Chief Operating Officer of DP Info, said that SMEs’ sentiments have been steady for some quarters as there have been no major events to generate either positive or negative sentiments.

“We are seeing a period of stability as SMEs build their businesses slowly. This environment is something most SME leaders welcome after the volatility of previous years. While SMEs toughen up to tide through the lull period during this post-festive season, anticipation of the Budget announcement might have also resulted in some adopting a wait-and-see approach,” Teo said.