Singapore Business Sentiment Recovers but Cost Pressures Persist

Singapore business sentiment improved during the second quarter as cost expectations eased, although companies remained cautious about expansion, recruitment and the wider economic outlook.

The Singapore Business Federation’s Business Sentiment Index rose two points to 53.3 for April to June, almost reversing the previous quarter’s decline but still indicating broadly neutral conditions.

Banking and insurance, health and social services were among the most optimistic sectors, while retail, education and wholesale trade recorded weaker sentiment.

The cost expectations index declined to 71.2 from 75.9 but remained elevated because of energy, raw material and supply-chain pressures.

The hiring outlook index edged higher to 56.3 from 55.1, suggesting companies generally expect stable employment levels.

Among more than 500 businesses surveyed, 32% expected economic conditions to deteriorate over the next year, while 53% anticipated little change.