Business outlook to remain positive in next six months
Published on: Thursday, May 25, 2023
By: Bernama
The business confidence for the construction sector remained in a negative trajectory with the confidence indicator at -26.9 per cent in the reference quarter while wholesale and retail trade and industry sectors turned pessimistic in the same quarter, it said.
Kuala Lumpur: Malaysia’s business outlook is seen to remain positive in the next six months from April to September 2023, with a net balance of +14.9 per cent from +12.1 per cent recorded previously, said the Department of Statistics Malaysia’s (DoSM).In a statement Wednesday, the department said the services sector showed the most optimistic sector, registering an improved net balance of +30.1 per cent as against +28.0 per cent for the first half of 2023, with all services sub-sectors foreseeing favourable business conditions over the next six months.
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Concurrently, it said the industry sector recorded a brighter net balance with +15.6 per cent in the forthcoming six months compared to +2.4 per cent recorded previously.
“Conversely, the construction sector anticipates a less favourable business situation for the next six months ending September 2023, with a net balance of -7.7 per cent from +7.1 per cent previously.
“Similarly, sentiments within the wholesale and retail trade sector turned pessimistic with a net balance of -4.7 per cent as compared to +16.7 per cent recorded for the period of January until June 2023,” it said.
However, the department noted that business sentiments in the near term had turned pessimistic as the confidence indicator decreased to -3.1 per cent in the second quarter of 2023 (2Q 2023) from +3.6 per cent in the last quarter.
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DoSM in its latest business tendency statistics report today said this expectation is in line with the global economic slowdown amid persistent challenges including inflationary pressures.
It noted that three sectors, namely construction, wholesale and retail trade, as well as industry anticipate challenging business conditions in 2Q 2023.
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The business confidence for the construction sector remained in a negative trajectory with the confidence indicator at -26.9 per cent in the reference quarter while wholesale and retail trade and industry sectors turned pessimistic in the same quarter, it said.
“Respondents within the wholesale and retail trade sector expect a less favourable business outlook with a confidence indicator of -10.2 per cent in 2Q as against +4.0 per cent in the last quarter, whereby both sub-sectors posted discouraging perceptions.
“The Industry sector also foresees a less favourable business situation in 2Q as the confidence indicator recorded -2.1 per cent from +1.1 per cent previously,” it shared.
DoSM also noted that the services sector continues to be optimistic about the business performance with a confidence indicator of +3.9 per cent for the corresponding quarter as compared to +11.4 per cent in the first quarter of 2023.
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