Sales volume growth to also moderate downwards to 2 percentage points.
Overall optimism in the manufacturing sector for second quarter of the year has weakened due to a slowdown in growth by the transport engineering and biomedical manufacturing segments, according to Singapore Commercial Credit Bureau (SCCB)’s Business Optimism Index (BOI).
Manufacturing firms in Singapore expect their profits to remain unchanged in April to June, whilst sales volume growth is expected to moderate downwards from 7.14 percentage points in Q1 to 2.86 percentage points in Q2.
Despite this, more manufacturing companies are expecting employment levels to grow in Q2. In fact, employment levels in the sector is seen to rise 11.48 percentage points in Q2 2018 which is higher compared to 9.52 percentage point projection in Q1 2018.
The Economic and Development Board (EDB) last February reported a 17.9% year-on-year increase the total outputs of manufacturing sector in January.
The BOI measures business confidence in the economy based on six parameters including sales volume, net profit, employment level, selling price, inventory levels, and new orders.
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