Singapore business sentiment moderates for Q4: Survey

  • Business sentiment has moderated slightly for the upcoming 4Q18, ending the rising trend of the preceding three quarters, according to the latest quarterly Singapore Commercial Credit Bureau’s Business Optimism Index released on 11 Sep.
  • The overall index eased from +10.58 percentage points for 3Q18 – a three-year high – to 9.19 percentage points for 4Q18. Compared with a year ago, however, this was up significantly from +2.6 percentage points for 4Q17.
  • An expansionary 4Q18 outlook was seen for five out of six indicators: sales volume, net profits, new orders, inventory and employment. The selling price index slipped into contraction at -0.98 percentage point, compared with +4.5 percentage points for the third quarter.
  • Compared with 3Q18, only two of the indicators – sales volume and net profits – were higher for 4Q18. However, all indicators except selling prices were better than for the same period a year ago.
  • Services and manufacturing remained the most optimistic business sectors, with all six indicators showing positive outlook.
  • In manufacturing, sales volume, net profits, new orders and inventory levels were up compared with 3Q18, while selling price and employment levels were lower. Services saw declines in most indicators, with only employment remaining unchanged.
  • Construction, in contrast, remained downbeat with only sales volume and net profits in the expansionary zone. The transportation sector’s outlook has also moderated, with net profit, selling price and inventory levels entering contraction.

External Link: