More services firms expect favourable business conditions in Q2

The percentage of firms who are upbeat on business was up to 15% from 14% last quarter.

Firms in the services sector expect a more favourable business condition in the second quarter of 2022, data from the Department of Statistics Singapore revealed.

From April to September 2022, 23% of services firms expect their business to improve, whilst 8% foresee deteriorating conditions.

This resulted in a net weighted balance of 15% of firms expecting more favourable business conditions, which is higher than the 14% recorded in the previous quarter.

Outlook of firms also remains positive towards operating revenue and employment, hitting a net weighted balance of 16% and 11&, respectively.

All industries in the services sector expect their business conditions to improve in Q2, except retail trade whose net weighted balance dropped to -5%.

The retail trade was also the only industry that expects a drop in its revenue in Q2.

On the other hand, the transportation and storage industry, was the most upbeat with their net weighted balance at 23%, followed by wholesale trade at 19%, finance and insurance at 18%, recreation, community & personal services industry at 16%, and accommodation at 15%.

Transportation and storage were also the industry with the most positive outlook on operating revenue (30%), and employment (19%), tied with wholesale trade.