Services sector expects slower business conditions from April to September

Only 8% of firms are optimistic.

Singapore’s services sector expects weaker business conditions in the six months from April to September 2025, according to SingStat.

Only 8% of firms are optimistic, whilst 25% expect conditions to worsen. This results in a net weighted balance of 17% predicting a less favourable outlook.

The finance and isurance industry expects tougher times ahead due to global economic uncertainty. Banks foresee weaker investment activity and lower loan demand. Payment services firms expect consumers to cut back on spending.

Retail trade and food and Beverage services also expect a slowdown, citing fewer festive periods compared to the previous six months. U.S. tariff news is adding to concerns, as households may delay spending, the department said.

The transport and storage industry anticipates weaker demand, especially in water transport, due to the soft global market.

Meanwhile, the recreational, community and personal services industry remains optimistic. Healthcare providers expect steady demand, and education firms see growing interest in upskilling courses.

Revenue is expected to fall in most service industries for April to June 2025, with a net weighted balance of -13%.

Retail trade is the most pessimistic, followed by transport and storage, F&B, info-comm, and finance and isurance.

Employment is also expected to decline slightly, with a net weighted balance of -3%. However, healthcare, education, insurance, property management, and cleaning and security services expect to hire more.