Local business sentiments have rebounded into the expansionary zone for Q2 2021, after four consecutive quarters of negative outlook. According to Singapore Commercial Credit Bureau (SCCB)’s Business Optimism Index study, BOI inched up for the third consecutive quarter from -1.03 percentage points in Q1 2021 to +3.94 percentage points in Q2 2021. On a year-on-year (y-o-y) basis, BOI jumped from -7.88 percentage points in Q2 2020 to +3.94 percentage points in Q2 2021.
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The Ministry of Trade and Industry (MTI) has maintained the GDP growth forecast for 2021 to be between +4.0 per cent to +6.0 per cent.
“The outlook for local businesses has shown signs of further recovery as we enter into the second quarter of 2021. The financial services, wholesale trade and manufacturing sectors have in particular continued to experience sustained growth and demand both locally and globally. For the first time in four consecutive quarters, we have also seen business optimism rebounding into the expansionary zone.” said Ms. Audrey Chia, SCCB’s Chief Executive Officer.
“The improvement in business sentiment is however uneven across different sectors, with both construction and transportation still experiencing a muted outlook from weakness in building activities and a slower pace of border re-opening amidst a global surge in COVID-19 cases and a more contagious strain of the virus.” added Ms. Chia.
Source: Singapore Commercial Credit Bureau