Businesses optimistic of 4Q performance

KUALA LUMPUR: Businesses expect a more favourable performance in the fourth quarter (4Q) of 2018 with a confidence indicator of 7.1 per cent compared with +6.0 per cent in the previous quarter.

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the confidence indicator for the services sector rose to 18.8 per cent in the fourth quarter of 2018 from 16.5 per cent in the preceding quarter.

The confidence indicator for the wholesale and retail trade sector also climbed to 13.2 per cent from +3.6 per cent, he said in a statement yesterday.

Mohd Uzir said in contrast, the confidence indicator for the construction sector slipped further to minus 21.5 per cent in the fourth quarter of 2018 from minus 7.7 per cent in the previous quarter.

He said a total of 42.6 per cent of respondents in all surveyed sectors covered expected their gross revenue to increase, while 14.8 per cent of them expected a decline in gross revenue.

At the same time, the Department of Statistics reported that business performance strengthened in the third quarter of 2018 with an overall net balance of 4.1 per cent, with the wholesale and retail trade sector (14.2 per cent) made up the main contributor to this increase.

“Businesses expect a more favourable performance in the October 2018-March 2019 period with a net balance of 12.3 per cent.

This is mainly supported by the wholesale and retail trade sector (23.1 per cent),” he said.