While the general business outlook for the next six months from October 2020 till March 2021 remains negative at 5%, it marks an improvement from the net weighted balance of -31% recorded in the previous quarter’s survey for the period of July to December 2020.
25% of firms expect slower business conditions in the next six months while 20% of firms are optimistic.
Within the services sector, industries including the recreation, community and personal services, food and beverage services, retail trade and information and communications expect business conditions to improve for the period.
See also: Fall in Singapore's total employment and retrenchment improves in 3Q2020
This is compared to the preceding six months that experienced a low base during to the circuit breaker period. Within the industry, healthcare providers are more optimistic in their business outlook on the back of the resumption of elective health services.
The food and beverage and retail trade industries expect better prospects as dine-in services are now allowed and physical stores are allowed to be reopened.
The year-end holidays and festive season shopping were also cited as reasons for their positive outlook.
Conversely, industries such as accommodation, real estate and business services continue to remain less optimistic in their outlook.
Hoteliers, for instance, expect slow demand in pick-up due to low tourist arrivals.
Firms in the real estate industry, likewise, are less optimistic. Firms in the business of the rental of commercial and office premises expect lower rental rates due to weaker demand.
