Singapore manufacturers fear a slowdown in new orders

They anticipate orders to slip to 25 ppt.

According to Dun & Bradstreet (D&B) Singapore’s latest Business Optimism Index (BOI) study, 5 of 6 leading business indicators have remained in the expansionary region for the third quarter.

Despite prevailing upbeat sentiments among local firms, 4 of 6 leading business indicators have shown signs of moderation in the latest study.

As the global economy experiences fresh setbacks, local firms remain vulnerable to a pick up in economic and socio-political volatilities around the world.

The muted sentiments displayed by local firms are evident in the deceleration of optimism levels in new orders, inventory levels, selling prices, employment levels.

Inventory levels for firms are expected to increase at a slower rate from 5.9 percentage points in the second quarter to 2.5 percentage points in the third quarter.

While hiring prospects are likely to be optimistic, optimism levels have declined from 15.8 percentage points to 12.5 percentage points.

Manufacturers have also anticipated a slowdown in new orders from 50 percentage points to 25 percentage points. Selling prices are also likely to remain unchanged compared to a marginally higher level of optimism at 0.9 percentage points in the second quarter.

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