Businesses expect improved conditions in 1Q24
Businesses are anticipating improved conditions in the first quarter (1Q) of 2024 with a positive confidence indicator of 4.2 per cent, up from 3.2 per cent in the fourth quarter (4Q) 2023, said the Department of Statistics Malaysia.
In a statement, chief statistician Datuk Seri Mohd Uzir Mahidin said businesses are confident about the business environment in this quarter, with the confidence indicator continuing its increasing trend since the third quarter of 2023.
All sectors expect stronger business conditions in 1Q 2024.
“Sentiment in the wholesale and retail trade sector has returned to positive after recording a negative trend for the previous three quarters, posting +4.7 per cent compared to -3.6 per cent in 4Q 2023.
“The services sector continues to be optimistic, with the confidence indicator increasing to +8.6 per cent as against +6.3 per cent in the last quarter,” he said.
After reverting to a positive trajectory, the construction sector continues its positive momentum with a confidence indicator of +10.3 per cent from +1.7 per cent in the previous quarter.
Meanwhile, the industry sector remains on a positive trajectory, with a confidence indicator of +0.6 per cent for the quarter under review compared to +4.0 per cent in 4Q 2023.
Looking ahead, Mohd Uzir said business perception for the first half of 2024 has improved marginally with a net balance of +10.0 per cent against the +9.8 per cent recorded previously, with all sectors showing positive signs.
He said the wholesale and retail trade sector is turning optimistic about the business landscape in the first half of 2024.
He said sentiment within the wholesale and retail trade sector has improved with a net balance of +15.2 per cent, bolstered by a brighter outlook in both wholesale trade and retail trade.
“Construction sector likewise anticipates a better business outlook, with a net balance of +6.9 per cent for the period of January to June 2024.
“Sentiment in the services sector also remains positive, with a net balance of +24.0 per cent compared to the +19.0 per cent recorded in the last quarter,” Mohd Uzir added.