The local business sentiment has moderated for the fourth straight quarter in the 1Q2023, with the business optimism index (BOI) falling to 4.73 percentage points.
The quarter’s BOI is down from the previous quarter’s 4.98 percentage points and down from the 5.91 percentage points in the 1Q2022, says the Singapore Commercial Credit Bureau (SCCB).
The SCCB is a subsidiary of the SGX-listed Credit Bureau Asia (CBA) Limited, a credit and risk information solutions provider in Southeast Asia.
During the quarter, five of six indicators are expansionary on a y-o-y basis, unchanged from that of the previous quarter’s findings. However, only one of six indicators showed signs of improvement on a q-o-q basis, compared to the three indicators in the 4Q2022.
On a y-o-y basis, the volume of sales, net profit, new orders, inventory levels, as well as employment levels fell, while selling prices rose.
On a q-o-q basis, all indicators except net profits fell.
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Among the sectors, the transportation, financial and construction sectors emerged as the “most optimistic” while the outlook for the wholesale sector remained “muted” in the 1Q2023.
“The outlook for Q1 2023 is relatively mixed with the transportation and construction sectors expecting an uptick in sentiments while the manufacturing and finance sectors have anticipated the outlook to be moderated slightly,” says Audrey Chia, SCCB’s CEO.
“On the whole, business sentiments have dampened further primarily due to the ongoing downside risks from geo-political uncertainties, higher inflationary risks and a deterioration in external demand conditions, specifically the wholesale trade sector. Moving into 2023, we expect the growth prospects for certain sectors such as transportation and services to remain positive while the outlook for externally-oriented sectors will likely remain subdued,” she adds.
