Business expects favorable environment in Q2: chief statistician

PAID JAYA: Businesses expect a favorable environment in the second quarter of 2024 (2Q24), supported by a marginal positive confidence index of +0.7% compared to +4.2% in the previous quarter, said Malaysia’s Chief Statistician Datuk Seri, Dr. Mohd Uzir Mahidin at the release of business trend statistics for Q2 2024.

He said the industrial sector remained optimistic about business performance, with a confidence index of +5.3% in the corresponding quarter compared to +0.6% in the first quarter of 2024.

“The improving outlook in the industrial sector is driven by three sub-sectors: mining, manufacturing and electricity and water, which forecast encouraging business conditions in the reference quarter. However, the construction, wholesale and retail trade and services sectors face difficult business conditions in the second quarter of 2024. Entrepreneurs’ confidence in the construction industry has weakened, and the confidence index in the reference quarter amounted to -14.8%,” he added.

Meanwhile, in the same quarter, the wholesale and retail trade and services sectors became pessimistic. Wholesale and retail respondents expect a less favorable business outlook, with confidence at -4.1% in the second quarter of 2024 compared to +4.7% in the last quarter.

The services sector also predicts a less desirable business situation in the second quarter of 2024, with a confidence index of -0.9% compared to +8.6% previously.

Looking ahead, Mohd Uzir said the business outlook for the April to September 2024 period remains vibrant, with a net balance of +14.9% compared to +10.0% recorded previously.

All industries register positively, except wholesale and retail trade. Industrial sentiment points to improved business prospects, with a net balance of +19.0%, compared to the previously reported 0%. Over the next six months, the services sector anticipates a positive business environment, with a net balance of +9.5% from +24.0% in the first quarter of 2024.” – added.

The construction sector also anticipates an optimistic business outlook, with a net balance of +3.7% in the coming period. The wholesale and retail sector expects a challenging business outlook for the next six months, with a net balance of -1.5% compared to +15.1% previously. Nevertheless, the wholesale trade subsector maintains a positive trajectory, recording +2.2% compared to +17.0% previously.