The slow growth in private building segment hurts business optimism.
Construction firms are expecting their net profit to fall 9.09 percentage points in Q2 this year, the Singapore Commercial Credit Bureau (SCCB)’s Business Optimism Index (BOI) revealed.
The employment growth projection also declined from 30 percentage points in Q1 2018 to 9.09 percentage points in Q2 2018.
“The outlook for the construction sector is expected to remain lacklustre due to muted construction activities in the coming months,” said Audrey Chia, CEO of SCCB, in a press release.
The decline in the private residential and industrial works was also the bane for construction sector in 2017, which shrank by 8.4%. The Ministry of Trade and Industry forecasted the construction sector’s performance to remain weakly this year due to low construction demand from the private sector.
The BOI measures business confidence in the economy based on a business sentiment survey of 200 business owners and senior executive across major industries in Singapore.
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