SINGAPORE – Singapore corporations are looking forward to 2022 with renewed optimism, although uncertainties stay over the brand new Omicron variant driving a brand new Covid-19 wave, a enterprise sentiment index out on Tuesday (Dec 7) confirmed.
The forward-looking Enterprise Optimism Index reached a two-year excessive because it climbed slowly from +5.78 share factors within the fourth quarter of 2021 to +5.91 share factors within the first quarter of subsequent yr.
A yr in the past the index was within the unfavorable zone at -1.01 share factors, after hitting an all-time low of -7.88 share factors within the second quarter of 2020 through the circuit breaker interval.
The index is compiled by Singapore Business Credit score Bureau (SCCB), a subsidiary of Credit score Bureau Asia.
SCCB chief govt Audrey Chia stated: “Whereas there may be renewed optimism throughout most sectors for the primary quarter of 2022, we now have additionally famous a slight moderation in sentiments amongst sure sectors, notably manufacturing providers and wholesale commerce. That is mirrored in a slower tempo of improve within the Enterprise Optimism Index within the first quarter of 2022 as in comparison with the fourth quarter of 2021.
“There are nonetheless lingering uncertainties concerning the brand new Omicron variant and the way this might doubtlessly affect world financial developments. Therefore, we count on the general outlook of companies right here to stay lukewarm transferring into the brand new yr.”
The index tracks enterprise sentiment via six indicators: quantity of gross sales, web revenue, promoting worth, new orders, stock and employment. Taken collectively, they point out how hopeful companies are in regards to the quarters forward.
For Q1 2022, 5 of the six indicators improved yr on yr, with quantity of gross sales being the exception.
The manufacturing sector was probably the most upbeat with all six indicators within the constructive territory, however gross sales quantity and web revenue moderated whereas web orders fell barely.
The monetary sector had 5 indicators in constructive territory as compared, with a leap in employment ranges.
Employment ranges fell into the unfavorable territory for the providers sector, however quantity of gross sales expanded and new orders jumped.
Sentiments throughout the wholesale sector cooled. Quantity of gross sales and web revenue shrank to zero development, whereas promoting worth, new orders and employment slipped.
The transportation sector’s outlook improved barely with three of six indicators in constructive territory, up from only one within the earlier quarter.
Equally, the development sector’s sentiments have been much less downbeat in comparison with three months in the past, with two indicators in constructive territory.
The mining and agriculture sectors have been probably the most pessimistic, anticipating quantity of gross sales to be at -40 and -20 share factors, respectively.
