Outlook for Singapore’s construction sector turns south

Outlook for Singapore’s construction sector turns south

The Singapore Commercial Credit Bureau (SCCB) released a lower but still positive overall business sentiment score of +2.6 ppt for Q4 this year.

However, indicators for the construction sector deteriorated after only two out of six indicators turned positive on a QoQ basis.

According to a SCCB press release, inventory levels have deteriorated further in negative territory from -7.14 percentage points in Q3 2017 to -30.0 percentage points in Q4 2017.

Net profits are expected to plunge from +7.14 ppt in Q3 2017 to 0 ppt in Q4 2017.

New orders will increase from -7.1 ppt to 0 ppt, whilst indicators for selling prices are expected to remain unchanged at 0 ppt.

However, volume of sales are expected to rise from +7.1 ppt to +10 ppt, and employment levels to +10ppt.

“Despite the optimism seen in the manufacturing and services sectors, a lacklustre construction demand in terms of contracts awarded will likely persist due primarily to a weak demand for private industrial and commercial projects,” commented Ms. Audrey Chia, SCCB’s chief executive officer.

 

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