Singapore’s business sentiment has marked a notable increase for the fourth consecutive quarter in Q3 2024, as reported by the Singapore Commercial Credit Bureau (SCCB) on June 10. The business optimism index climbed to +4.94 percentage points, up from +4.82 percentage points in Q2 and surpassing the +3.98 percentage points recorded in Q3 2023. This index is derived from a quarterly survey of 200 business owners and senior executives across various major industries.

Key indicators such as sales volume, selling price, new orders, and employment levels remain in an expansionary state, indicating ongoing positive trends. Additionally, the decline in inventory levels has narrowed to -1.48 percentage points in Q3 2024, compared to -2.99 percentage points in the previous quarter.

In terms of quarter-on-quarter performance, three out of six indicators showed improvement: sales volume, net profit, and employment levels. Conversely, selling price and new orders experienced moderation. Year-on-year, sales volume and net profit have significantly increased to +5.93 percentage points in Q3 2024, up from +2.99 percentage points in the same period last year.

New orders rose to +5.19 percentage points, while employment levels climbed to +6.67 percentage points compared to +4.48 percentage points in Q3 2023. However, selling prices saw a decline to +7.41 percentage points from +11.19 percentage points in the previous year.

The SCCB noted that the transportation, construction, and financial industries exhibit the highest levels of optimism, with at least four out of six indicators positive for these sectors.

In contrast, the manufacturing sector remains less optimistic, with only two of six indicators in positive territory, as both sales volume and net profit dropped to -3.85 percentage points in Q3 2024, entering a contraction phase. However, the wholesale sector showed slight improvement, with three indicators in positive territory as sales volume and net profit rebounded to +6.67 percentage points in Q3 2024.

Audrey Chia, CEO of SCCB, expressed an overall upbeat outlook for local businesses in the third quarter. She emphasized the sustained growth in transportation and construction, as well as optimism in financial and services sectors. Furthermore, she pointed out the improved sentiment in the wholesale trade sector, driven by a recovery in external demand. Nonetheless, she cautioned that geopolitical tensions and vulnerabilities could pose risks to this positive trajectory.