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Singapore business confidence falls for another quarter in Q3: SCCB
LOCAL business sentiment has moderated slightly for the second consecutive quarter in the third quarter of 2022, amid a global economic slowdown and geopolitical uncertainties, said the Singapore Commercial Credit Bureau on Tuesday (Jun 14).
Its quarterly Business Optimism Index (BOI) slid to +5.10 percentage points in Q3 from +5.35 percentage points in the previous quarter, although BOI rose from +4.07 percentage points in Q3 a year ago.
Two of 6 indicators – which include volume of sales, net profit, selling prices, new orders, inventory levels and employment – saw improvements on quarter, as compared to only 1 in Q2.
In Q3, selling prices rose to +8.96 percentage points from +5.22 percentage points in Q2, while new orders jumped to +10.45 percentage points from +5.22 percentage points.
Meanwhile, the volume of sales fell to +2.24 percentage points from +2.99 percentage points, net profits fell to +1.49 percentage points from +2.99 percentage points, and employment levels dipped to +9.70 percentage points from +11.94 percentage points.
Inventory levels also remained contractionary, at -2.24 percentage points in Q3 from -1.49 percentage points in Q2.
On a year-on-year basis, however, employment levels jumped from +3.05 percentage points while inventory levels increased from -6.11 percentage points. Meanwhile, both the volume of sales and net profits moderately visibly from +7.63 percentage points each in 2021.
Commenting on the results, SCCB chief executive Audrey Chia noted that the overall business outlook remains optimistic despite the moderation.
“However, the global uncertainties surrounding the Russia-Ukraine conflict as well as China’s slower gross domestic product growth are expected to weigh on sentiments in the coming months,” she said.
“The outward-oriented sectors, such as wholesale trade, are also likely to face external headwinds in the near term.”
By sector, SCCB expects the transportation and construction sectors will have a brighter outlook due to a boost in tourist arrivals, as well as higher demand for construction projects.
The transportation sector improved in the quarter with 4 of 6 indicators in positive territory, as compared to 3 indicators in Q2, while the construction sector had 4 indicators in positive territory in Q3, as compared to 2 indicators in Q2.
SCCB also noted that the financial and manufacturing sectors are the most optimistic, with all 6 indicators in positive territory for both sectors.
Meanwhile, the outlook for the services sector moderated slightly with 5 of 6 indicators in positive territory, while the wholesale sector remained cautiously optimistic with 3 indicators in positive territory.
As for the mining sector, it remains the most downbeat with all indicators in the negative zone, similar to Q2.
Source: https://www.businesstimes.com.sg/sme/singapore-business-confidence-falls-for-another-quarter-in-q3-sccb