Sustained by the improving global sentiment and brighter economic outlook, many local companies in Singapore have reported strong market expectations for the current quarter in the latest Business Optimism Index survey conducted by Dun & Bradstreet.
The Business Optimism Index is based on the expectation surveys conducted quarterly on 200 senior executives and business owners in the major industry sectors across the country. The indices are calculated by subtracting the percentage of respondents that expect decreases from the percentage of those that see an increase.
Generally, Singapore’s business sentiment is expected to pick up in the second quarter, except in the construction sector, where it registered a net optimism index of minus 22 percent.
Industry optimism on net profit increased 34 percent from 11 percent during the first quarter. Companies were optimistic about the sales volume, with an increase of 22 percent optimistic against 19 percent in the first quarter. The agricultural, mining, services and financial sectors were the most optimistic in these areas.
Sentiment on selling prices also increased 14 percent from six percent in the previous quarter. The agricultural sector showed a particularly strong net optimism index of 50 percent in this area.
With a two percent unemployment rate projected this year, hiring expectations showed a positive index score of 14 percent. While the transport and mining sectors showed the most positive about hiring, manufacturers remained cautious, with eight percent net optimism index.
The services and financial sectors, on the other hand, were bullish about the business outlook. Many of these companies anticipate higher sales, net profit and employment.