SME business outlook crashes to three-year low as profit troubles mount

Such pessimism hasn’t been seen since the Eurozone crisis.

Business sentiment among Singapore’s small and medium enterprises (SMEs) plunged to a fresh low in the fourth quarter of 2015, with more businesses expecting slower sales and dimmer profit prospects.

According to the SBF-DP SME Index, SME optimism has fallen every quarter this year, and the current score of 51.9 was last seen in the fourth quarter of 2012, when the index dipped to 51.6 on back of the Eurozone debt crisis.

All six industries expect weaker sales and profits for the next six months, with most businesses reporting lower business expansion and hiring expectations.

The Index, a joint initiative of the Singapore Business Federation (SBF) and DP Information Group, measures the business sentiment of SMEs for the next six months and covers some 3,600 businesses.