SINGAPORE - Local business leaders are more upbeat about the local economy, with the latest study showing that optimism among local businesses has improved for the second quarter of 2013, reversing a downward trend seen in the first three months of this year.
According to Dun & Bradstreet (D&B) Singapore's latest Business Optimism Index (BOI) study, all 6 leading business indicators have risen into the expansionary region for the second quarter of 2013, a marked contrast from the previous quarter with only 2 of 6 leading business indicators in the expansionary region.
For the second quarter, strong increases were seen in volume of sales, net profits and employment levels with optimism levels in volume of sales soaring most from -5.1 percentage points to 17.5 percentage points.
Employment expectations ranked second as optimism levels climbed from 5.8 percentage points to 15.5 percentage points. Net profits have also moved into the expansionary region from -1.6 percentage points to 11.6 percentage points.
Meanwhile, inventory levels and selling prices have reported modest increases, at 5.9 percentage points and 0.9 percentage points respectively. New orders for the manufacturing sector are likely to increase by 50 percentage points this quarter.
Local businesses in the services sector were the most optimistic with an increase seen across all 5 leading business indicators. Of the 5 indicators, the services sector scored well in expected volume of sales, net profits, selling prices and employment levels at 25.7 percentage points, 20 percentage points, 17.1 percentage points and 14.3 percentage points respectively. Inventory levels have also risen to 5.7 percentage points.