KUALA LUMPUR: Businesses foresee an improving business situation for the third quarter (3Q) of 2023 with the confidence indicator turning positive to 0.7 per cent from -3.1 per cent in the second quarter (2Q), says the Department of Statistics Malaysia (DoSM).
Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said this was supported by factors such as the stability of the job market, the upsurge in domestic tourism, and optimistic expectations in the health tourism industry.
“In 3Q 2023, positive business expectation is bolstered by the services and industry sectors,” he said in the statement on business tendency statistics for the quarter today.
DoSM said the services sector remained optimistic about business outlook with a confidence indicator of 6.1 per cent versus 3.9 per cent in the previous quarter.
Simultaneously, sentiment within the industry sector swung to a positive trajectory by posting 1.3 per cent from -2.1 per cent in 2Q 2023.
DoSM said the better perception in the industry sector was supported by two sub-sectors, namely agriculture and mining, both of which anticipated favourable business conditions in the current quarter.
On the other hand, the construction sector persisted in anticipating negative business conditions with a confidence indicator of -26.9 per cent in 3Q 2023, it said.
“Likewise, the wholesale and retail trade sector remains pessimistic (but) with an improved confidence indicator of -1.5 per cent in the reference quarter from -10.2 per cent in the second quarter of 2023,” it added.
Upbeat business sentiment
DoSM said looking at the business sentiment for the six months ahead ending December 2023, businesses remained upbeat, albeit at a lower net balance of 13.9 per cent from 14.9 per cent recorded in the preceding quarter.
“Positive outlook is underpinned across all sectors, indicating improved business conditions in the forecast period,” the agency said.
DoSM said the services sector anticipated a favourable situation in the upcoming six months with a net balance of 27.0 per cent against the 30.1 per cent recorded for the April-September 2023 period.
Similarly, the business tendency survey found the industry sector expected a better business situation with a net balance of 9.7 per cent compared to 15.6 per cent previously.
Moreover, the wholesale and retail trade as well as construction sectors turned optimistic on the business situation for the second half of 2023.
Sentiment within the wholesale and retail trade sector improved with a net balance 7.2 per cent, aided by a better outlook in the wholesale trade sub-sector.
DoSM dsaid the construction sector also foresaw positive business condition with a net balance of 2.6 per cent compared to the -7.7 per cent recorded previously. – BERNAMA
