For the second half of this year, the business expectations of the companies in the services sector lowered a little, however, hiring in particular segments might increase, according to the latest report released yesterday by the Department of Statistics Singapore.
1,500 business in the services sector were surveyed by the report and a slight uptick in companies which expect things to worsen over the next 6 months was found, from 11% three months back to 12% at present. And 14% of companies are hoping that things would improve, which is down a tad from 15% three months back. The rest of the businesses expect conditions to remain the same.
The report ‘The Business Expectations (of Services Sector)’ is published every 3 months. It looks at general business expectations for the next 6 months, however, on certain questions like business receipts &, hiring it looks at expectations for the quarter.
It was stated by the economist at CIMB Private Banking, Song Seng Wun that the marginally weaker outlook comes unsurprisingly considering the ongoing trade war between China and the United States.
He stated that we are a small open economy, & similarly, the sectors which are more exposed to the external demand & sentiment are naturally more at risk and concerned about where they will be selling their goods & services.
In spite of the modest slide in demand & sentiment, the majority of the industries within the services sector still are expecting a rise in operating receipts over the current 3rd quarter. They are also anticipating a rise in hiring activity over that period.
A few industries remain optimistic and are relatively less concerned. While the overall business outlook for the services sector has darkened slightly, a few industries in the sector which remain optimistic for the 2nd half of the year include accommodation, transport & storage, food & beverage.