7% of car retailers see a less favourable business climate in 1H 2011

Specifically, vehicles retailers express their concern over the reduced Certificate of Entitlement quota.

In the Business Expectations Survey for the services sector conducted by the Department of Statistics Singapore, an overall net weighted balance of 19% of firms in the services sector anticipates favourable business prospects for the period of January to June 2011 compared with July to December 2010.

This magnitude is smaller than the net weighted balance of 24% registered in the same period of the previous year (i.e. Jan - Jun 2010) and the net weighted balance of 27% recorded for Oct 2010 - Mar 2011 in previous quarter’s survey.

In the wholesale trade industry, a net weighted balance of 22% of wholesalers expects the business situation to improve for the first half of 2011 over the second half of 2010. These include wholesalers of cosmetics & toiletries, industrial machinery & equipment and electronic components.

A net weighted balance of 7% of firms in the retail trade industry foresees a less favourable business climate for the period of Jan - Jun 2011 over Jul - Dec 2010. In particular, retailers of motor vehicles express concern over the reduced Certificate of Entitlement quota.

Firms in the transport & storage industry anticipate business conditions to remain similar for the next six months ending Jun 2011.

Hoteliers continue to express positive business sentiments for the six-month period ending Jun 2011. Similarly, a net weighted balance of 20% of firms in the catering trade industry is upbeat about the business environment for the period of Jan - Jun 2011 compared with Jul - Dec 2010. Conventional and fast food restaurants are among those that project better business ahead.

Within the information & communications industry, firms expect business to be stable for the first half of 2011.

In the financial services industry, a net weighted balance of 47% of firms is optimistic about business conditions for the six-month period ending Jun 2011. These include banks & finance companies, stock, share & bond brokers, fund managers and insurance companies.

Firms in the real estate industry are generally cautious about the business situation in the coming months. Majority of the firms (a weighted 91%), in particular the real estate developers, foresee the business climate to remain unchanged for the first half of 2011 compared with the second half of 2010. A weighted 8% of firms expresses positive sentiments while a weighted 1% of firms expects business conditions to deteriorate, resulting in a net weighted balance of 7% of firms anticipating an increase in business for the period of Jan - Jun 2011. Among those with positive outlook are operators of service apartments and real estate management firms.

Within the business services industry, a net weighted balance of 18% of firms projects favourable business outlook for the first half of 2011. In particular, firms engaged in legal and engineering activities are among those that forecast positive business outlook.

The amusement & recreation industry continues to be optimistic about the business conditions for the period of Jan - Jun 2011.