Business confidence in Singapore rose for the second consecutive quarter in Q2 2018, according to a business optimism index study conducted by the Singapore Commercial Credit Bureau (SCCB).
Its figures were released on Monday (March 5) and showed that sentiments visibly rose from +4.29 percentage points in Q1 2018 to +8.5 pecentage points in Q2 2018.
On a year-on-year basis, the index increased from +2.66 percentage points in Q2 2017.
The quarterly index is a measure of business confidence in the economy and takes into account six indicators: volume of sales, net profits, selling prices, new orders, inventory levels, and employment levels.
The study found that for Q2 2018, both transportation and services emerged as the most optimistic sectors with five indicators in the region of growth.
The construction sector was the among the least optimistic sectors with two indicators in the positive region due to muted growth within the private building segment.
“We expect the growth outlook to be relatively positive although downside risks will still prevail in 2018. The transportation and service-oriented sectors will be the key pillars of growth for 2018,” said SCCB CEO Ms Audrey Chia.
“Innovation, technological adoption and plugging gaps in skill sets would be the key areas which firms should focus on to remain relevant.”