SINGAPORE – Local business sentiment continues an upward trajectory, hitting a one-year high for the second quarter of 2024.

Data from the Singapore Commercial Credit Bureau (SCCB) released on March 11 showed that the Business Optimism Index rose for the third consecutive quarter, increasing to 4.82 percentage points for the second quarter from 4.48 percentage points in the first quarter of 2024.

Year on year, the index for the quarter was also higher than the 4.6 percentage points in the second quarter of 2023.

Similar to the previous quarter, indicators of sales volume, net profit, selling price, new orders and employment level stayed expansionary, while inventory level fell further to minus 2.99 percentage points for the second quarter of 2024 from minus 2.24 percentage points in the first quarter of 2024.

Three of six indicators have improved on a quarter-on-quarter basis, namely sales volume, net profit and new orders, while selling price and employment level moderated.

On the year, sales volume jumped to 3.7 percentage points from 1.49 percentage points in the second quarter of 2023. Net profit increased to 4.44 percentage points from 0 percentage point.

Inventory level, though in the contractionary territory, improved to minus 2.99 percentage points from minus 4.48 percentage points.

Selling price fell to 10.37 percentage points for the second quarter of 2024 from 14.18 percentage points a year ago.

New orders declined to 5.93 percentage points from 8.96 percentage points in the second quarter of 2023, and employment level fell to 7.41 percentage points from 7.46 percentage points.

On a sectoral perspective, similar to the previous quarter, the construction and transportation sectors have emerged as the most optimistic sectors, with at least five of the indicators in positive territory.

The outlook for the financial and manufacturing sectors has improved slightly as three of the six indicators rose.

Business sentiment within the services sector remained upbeat, with four of the six indicators positive.

Sentiment within the wholesale sector remained weak, with two of six indicators in positive territory, as with the first quarter. The sector’s indicators of sales volume, net profit and new orders all dropped in the quarter.

SCCB chief executive Audrey Chia noted the upbeat outlook for local business in the second quarter.

“We are seeing a sustained growth in the construction and transportation sectors, as well as a rebound in both manufacturing and financial sectors from the previous quarter.

“However, downside risks in global supply chains are likely to remain in the light of ongoing geopolitical tensions and subdued growth within the wholesale trade segment,” said Ms Chia. THE BUSINESS TIMES