Local business sentiment has moderated for the second consecutive quarter in Q2022, according to a survey released by Singapore Commercial Credit Bureau (SCCB) on June 14.

SCCB is a subsidiary of Credit Bureau Asia (CBA), a credit and risk information solutions provider in Southeast Asia.

The survey, which captures the Business Optimism Index (BOI), notes that it slid further, down from 5.35 percentage points in 2Q2022 to 5.10 percentage points in 3Q2022.

On a y-o-y basis, the BOI rebounded from 4.07 percentage points in 3Q2021 to 5.10 percentage points in 3Q2022.

According to SCCB, the financial and manufacturing sectors are the most optimistic while the outlook for the construction and transportation sectors has improved in 3Q2022.

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Two of six indicators have experienced improvements on a q-o-q basis as compared to only one indicator in 2Q2022.

Volume of sales moderated further from 2.99 percentage points in 2Q2022 to 2.24 percentage points in 3Q2022.

Net profits fell from 2.99 percentage points in 2Q2022 to 1.49 percentage points in 3Q2022.

Selling price increased from 5.22 percentage points in 2Q2022 to 8.96 percentage points in 3Q2022.

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New orders jumped from 5.22 percentage points in 2Q2022 to 10.45 percentage points in 3Q2022.

Inventory levels remained contractionary, down from -1.49 percentage points in 2Q2022 to -2.24 percentage points in 3Q2022.

Employment levels dipped slightly from 11.94 percentage points in 2Q2022 to 9.70 percentage points in 3Q2022.

On a y-o-y basis, four of six indicators have improved in 3Q2022.

Volume of sales moderated strongly from 7.63 percentage points in 3Q2021 to 2.24 percentage points in 3Q2022.

Net profit fell from +7.63 percentage points in 3Q2021 to 1.49 percentage points in 3Q2022.

Selling price rose from +2.29 percentage points in 3Q2021 to +8.96 percentage points in 3Q2022.

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New orders climbed from +9.92 percentage points in 3Q2021 to +10.45 percentage points in 3Q2022.

Inventory levels increased from -6.11 percentage points in 3Q2021 -2.24 percentage points in 3Q022.

Employment levels jumped from +3.05 percentage point in 3Q2021 to +9.70 percentage points in 3Q2022.

“The overall outlook for local businesses remains optimistic although we are seeing further moderation for 3Q2022. Both transportation and construction sectors are expecting a brighter outlook due largely to a boost in tourist arrivals as well as higher demand for construction projects,” says Audrey Chia, CEO of SCCB.

“However, the global uncertainties surrounding the Russia-Ukraine conflict as well as China’s slower GDP growth are expected to weigh on sentiments in the coming months. The outward-oriented sectors such as wholesale trade are also likely to face external headwinds in the near-term,” she adds.

Business sentiment for 3Q2022 experiences slight moderation amid global economic slowdown and geopolitical uncertainties

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