45% of retail firms predict bleak business outlook until September

Financing measures haunt some.

According to the Business Expectations Survey for the services sector by the Department of Statistics, a net weighted balance of 45% of firms in the retail trade industry is less optimistic in their business outlook for the six-month period ending Sep 2013. In particular, retailers of motor vehicles express concern in view of the financing restrictions on motor vehicle loans.

Demand in the wholesale trade industry is expected to increase for the period of Apr - Sep 2013. Firms with positive sentiments are mainly engaged in the wholesale of food & beverages and electronic & telecommunication equipments.

A net weighted balance of 45% of firms in the retail trade industry is less optimistic in their business outlook for the six-month period ending Sep 2013. In particular, retailers of motor vehicles express concern in view of the financing restrictions on motor vehicle loans.

Firms in the transport & storage industry expect business to remain stable for Apr - Sep 2013. The accommodation industry predicts business to be upbeat with a net weighted balance of 10%.

A net weighted balance of 17% of firms in the food & beverage services industry expects less favourable business conditions for the six-month period ending Sep 2013, citing higher operating cost as a factor for concern. Firms in the information & communications industry predict that the business outlook will be positive.

An overall net weighted balance of 6% of firms in the services sector expects positive business prospects for the period of Apr - Sep 2013 compared with Oct 2012 -Mar 2013. Majority of firms (a weighted 66%) foresee the business climate to remain stable.

A weighted 20% of firms is optimistic about business prospects, while a weighted 14% of firms projects slower business. In comparison, the previous quarter’s survey recorded a negative net weighted balance of 5% for Jan - Jun 2013. Compared to the same period last year, the positive net weighted balance of 6% for Apr - Sep 2013 is the same as that registered for Apr - Sep 2012.