Local firms more optimistic about business in 1Q24

Construction and transportation emerged as the most optimistic sectors.

Local businesses’ confidence has risen, with more being moderately upbeat towards 1Q24.

According to the Singapore Commercial Credit Bureau (SCCB), the Business Optimism Index (BOI) of Singapore rose to 4.48 percentage points in 1Q24 from 4.35 percentage points in 4Q23. On a year-on-year basis, however, BOI fell (4.98 percentage points vs 4.73 percentage points)

In the same quarter, two of the six business parameters measured in the index saw improvements, namely selling price and new orders.

Based on the BOI, these indicators rose to 11.94 percentage points and 5.22 percentage points, respectively.

Meanwhile, net profits (2.24 percentage points) and employment levels (7.46 percentage points) remained expansionary. Volume of sales also remained expansionary, albeit, moderating to 2.24 percentage points

On the other hand, inventory levels remained contractionary at -2.24 percentage points.

Looking at sectors, SCCB said the construction and transportation sectors were the most upbeat.