Malaysia: Business confidence indicator remains positive in 3Q

KUALA LUMPUR: Business sentiment continued to be positive for the third quarter (3Q) of this year with the confidence indicator of 4.7% compared with 3.5% in the second quarter (2Q), according to the Statistics Department.

The services sector anticipated better performance with the confidence indicator of 13.6% in the reference quarter from 5.6% in 2Q, while sentiment within the industry sector remains upbeat by posting 6.6% compared to 0.8% in 2Q.

“Positive sentiment by all of the sub-sectors namely agriculture, mining, manufacturing and electricity and water induced the better outlook,” it said in a statement yesterday.

In contrast, the wholesale and retail trade sector predicted an unfavourable business condition down 5.8% as against 15.5% in 2Q, while sentiment within the construction sector remained negative with the confidence indicator down 24.9%, slightly decreased from 23.2% in 2Q.

On the business prospects for the second half of 2022, the outlook moderated with a net balance of 12.2% from 25% registered for the term of April until September this year.

“Sentiment within the services sector improved slightly with a net balance of 26.5% compared with the 23.6% recorded previously.

“All sub-sectors under the services sector anticipated positive outlook for the next six months with the insurance, administrative and support services, as well as health sub-sectors, being the most optimistic sub-sectors,” it said.

Concurrently, the industry sector has a favourable business condition with a net balance 14.5% as against 22.1%.

The statistics department said that conversely, the wholesale and retail trade sector turned pessimistic on the business situation for the next six months ending December with net balance down 10.4% from an increase of 50%.

“For the construction sector, the outlook remains downbeat in the coming six months with net balance down 10.3% compared with the 25% downtrend recorded previously,” it added. — Bernama