Singapore business confidence drops to 12-month low in Q4: Report
This is the second consecutive quarterly dip in the Singapore Commercial Credit Bureau’s latest Business Optimism Index, with all six business indicators experiencing on-year decrease in optimism levels in the fourth quarter.
SINGAPORE: The faltering global economic growth impacted local business confidence in the fourth quarter, causing it to slip to a 12-month low, according to the Singapore Commercial Credit Bureau (SCCB).
SCCB’s Business Optimism Index (BOI), released on Monday (Sep 29), stated that ongoing geopolitical uncertainties around the world has led to economic growth around the world to falter. This, in turn, has eroded business confidence here with the overall BOI at +10.79 percentage points, down from the previous quarter’s +14.65 percentage points.
Year-on-year, overall BOI score “plummeted” from +33.98 percentage points to the fourth quarter’s +10.79, the study showed.
In terms of the six business indicators used in the study, SCCB noted that all of these experienced an on-year decrease in optimism levels in the fourth quarter. By contrast, the previous quarter only saw two of the six indicators experience decreases in net optimism levels.
Volume of sales, net profits and inventory levels experienced the highest deceleration in optimism levels. Volume of sales saw a drop from +50.8 percentage points to +22.14, net profits went down from +44.1 percentage points to +17.14 and inventory levels dipped from +29.2 percentage points to +3.57, SCCB stated.
The other three indicators are employment levels, selling prices and new orders, it added.
The SCCB says it conducts Business Expectations Surveys every quarter. Each quarter, 200 business owners and senior executives representing major industry sectors across Singapore are asked if they expect increases, decreases or no changes in their upcoming quarterly sales, profits, employment, new orders, inventories and selling prices.
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