SMEs across most industries continue to grow in Q3, except ICT

Overall, SME performance improved to 50.8 from 50.2 in the OCBC index.

The performance and health of small and medium enterprises (SMEs) in Singapore continued to improve in Q3 2024, according to the latest OCBC SME Index.

For the second consecutive quarter, SMEs were in expansionary territory, with a reading of 50.8, up from 50.2 in Q2.

OCBC attributed the improvement to the 0.4% YoY and 0.3% YoY increase in SME collections and payments, respectively. 

Based on the latest reading,  only ICT remained in contractionary territory, falling further to 48.7.

Amongst those who were in the expansion state, F&B (51.2), Transport and Logistics (51.2), Healthcare (50.9), Retail (50.8), and Wholesale Trade (50.7) reported increases.

Whilst seeing a decline in their readings, Resources (50.9) and Education (50.5) remain the expansionary territory.

Meanwhile, Business Services (50.6), Building and Construction (50.4), and Manufacturing (50.4) industries have all entered the expansion territory. 

“The OCBC SME Index is likely to remain slightly expansionary in the next quarter and range bound moving ahead. As the gradual recovery in electronics demand is expected to provide growth momentum for trade-related sectors, further interest rate cuts and a disinflationary environment should also help mitigate domestic business cost concerns.” OCBC said.

“However, downside risks persist, as heightened geopolitical tensions would result in greater uncertainty in the macroeconomic environment.s,” OCBC added.