Singapore business sentiment has continued its upward trajectory for the fifth consecutive quarter, reaching a two-year high in Q4 2024.
According to data released by the Singapore Commercial Credit Bureau (SCCB) on September 9, the Business Optimism Index slightly increased to +5.06 percentage points in Q4, up from +4.94 percentage points in Q3. Year-on-year, the index also surpassed the +4.35 percentage points recorded in Q4 2023.
Similar to the previous quarter, indicators such as sales volume, net profit, selling price, new orders, and employment levels remained expansionary. Inventory levels rebounded to zero percentage points in Q4 2024 from -1.48 percentage points in Q3 2024. Three out of six indicators—sales volume, net profit, and inventory level—improved every quarter, while selling price and new orders moderated. Employment levels fell to +5.93 percentage points in Q4, down from +6.67 percentage points in the previous quarter.
Year-on-year, both sales volume and net profit rose to +7.41 percentage points in Q4 2024, from +3.73 percentage points and +2.24 percentage points, respectively. Inventory levels for Q4 2024 stood at zero percentage points, recovering from -2.24 percentage points the previous year. New orders moderated to +2.96 percentage points in the latest quarter, down from +3.73 percentage points in Q4 2023. Selling prices dropped to +6.67 percentage points in Q4 2024 from +11.19 percentage points the previous year, while employment levels dipped to +5.93 percentage points from +7.46 percentage points.
The SCCB highlighted that the financial, construction, and transportation sectors were the most optimistic, with at least five out of six indicators in positive territory. Sentiment in the manufacturing sector improved slightly, with two out of six indicators in positive territory. Both sales volume and net profit rebounded from the contractionary zone to zero percentage points in Q4 2024, from -3.85 percentage points in Q3 2024. The outlook for the wholesale and services sectors remained positive, with three out of six indicators in positive territory.
SCCB CEO Audrey Chia anticipates a brighter quarter ahead for local firms, attributing the relatively upbeat outlook to strong growth prospects in the financial, construction, and transportation sectors. She noted that despite recent contractions, the manufacturing sector shows signs of potential recovery in the final quarter of 2024. However, she cautioned about global geopolitical and economic risks.
Source: The Business Times