Q2 2024 Singapore Business Confidence Soars to One-Year Peak

11 Mar, 2024

Q2 2024 Singapore Business Confidence Soars to One-Year Peak

Local business sentiment is on an upward trajectory, reaching a one-year high in the second quarter of 2024, according to data released by the Singapore Commercial Credit Bureau (SCCB) on March 11. The Business Optimism Index rose for the third consecutive quarter, reaching 4.82 percentage points, up from 4.48 in Q1 2024. Compared to the second quarter of 2023, the index for Q2 2024 is also higher than the previous year's 4.6 percentage points.

Key indicators such as sales volume, net profit, selling price, new orders, and employment level remained expansionary, while the inventory level saw improvement, falling to minus 2.99 percentage points in Q2 2024 from minus 2.24 in Q1 2024. Quarter-on-quarter, three indicators showed improvement: sales volume, net profit, and new orders, while selling price and employment level moderated.

On a yearly basis, sales volume and net profit increased significantly, while inventory level, though in contractionary territory, improved. Selling price, new orders, and employment level showed a decline year-on-year.

Sectorally, the construction and transportation sectors emerged as the most optimistic, with at least five indicators in positive territory. The financial and manufacturing sectors showed slight improvement, while sentiments within the services sector remained positive. The wholesale sector, however, continued to face challenges, with two indicators in positive territory.

SCCB CEO Audrey Chia highlighted the positive outlook for local businesses in Q2, noting sustained growth in construction and transportation, along with a rebound in manufacturing and financial sectors. She cautioned, however, about global supply chain risks due to geopolitical tensions and subdued growth in the wholesale trade segment.