Bet­ter busi­ness per­for­mance seen

> Con­fi­dence in­di­ca­tor points to slight in­crease in fourth quar­ter, re­ports Sta­tis­tics Depart­ment

The Sun (Malaysia) - - SUNBIZ -

PE­TAL­ING JAYA: The busi­ness per­for­mance in the fourth quar­ter of 2016 is ex­pected to in­crease slightly as recorded by the con­fi­dence in­di­ca­tor of +0.1%, ac­cord­ing to the Sta­tis­tics Depart­ment.

Con­fi­dence in­di­ca­tor is a short­term in­di­ca­tor which sum­marises the over­all views of busi­ness sit­u­a­tion in var­i­ous sec­tors in Malaysia. The con­fi­dence in­di­ca­tor is com­puted as the av­er­age of the net bal­ance for se­lected vari­ables.

The busi­ness per­for­mances for in­dus­try and ser­vices sec­tors are ex­pected to in­crease in fourth quar­ter 2016 with con­fi­dence in­di­ca­tors of +4.2% and +2.6% re­spec­tively. Mean­while, the con­struc­tion and whole­sale & re­tail trade sec­tors are ex­pected to de­cline in the same quar­ter at -18.8% and - 16.0% re­spec­tively.

Fore­cast in the fourth quar­ter of 2016 showed 29.0% of es­tab­lish­ments covered in this sur­vey ex­pect an in­crease in gross rev­enue while 21.7% of es­tab­lish­ments fore­see a de­crease. Mean­while, 49.3% of es­tab­lish­ments pre­dict un­changed gross rev­enue.

The gross rev­enue in the fourth quar­ter of 2016 is ex­pected to rise with net bal­ance of +7.3%, de­not­ing more favourable re­sponses.

In terms of num­ber of em­ploy­ees, 21.9% of es­tab­lish­ments pre­dict an in­crease while, 10.1% of es­tab­lish­ments pre­dict a de­crease in the fourth quar­ter of 2016. The mag­ni­tude of the positive net bal­ance for the num­ber of em­ploy­ees in the same quar­ter is lower, which is +11.8% than +14.9% reg­is­tered in the third quar­ter of 2016.

Mean­while, the busi­ness per­for­mance in Oc­to­ber 2016 to March 2017 is ex­pected to in­crease with a net bal­ance of +6.0%. The in­dus­try and ser­vices sec­tors are ex­pected to in­crease with the net bal­ance of +10.5% and +16.0% re­spec­tively. On the other hand, the con­struc­tion and whole­sale & re­tail trade sec­tors are ex­pected to de­cline with net bal­ance of -29.4% and -22.1% re­spec­tively.

Ac­cord­ing to Busi­ness Ten­dency Sta­tis­tics, the cur­rent sit­u­a­tion of busi­ness per­for­mance in third quar­ter 2016 is lower with an over­all net bal­ance of all sec­tors - 5.8% as com­pared to -2.3% in the pre­vi­ous quar­ter.

More than half of the es­tab­lish­ments (61.2%) re­ported the cur­rent sit­u­a­tion of their busi­ness to re­main the same. Mean­while, 16.5% of es­tab­lish­ments showed im­prove­ment in their busi­ness cli­mate while 22.3% of es­tab­lish­ments showed less favourable con­di­tions.

In the third quar­ter of 2016, the es­tab­lish­ments re­ported that their gross rev­enue showed a de­crease with a net bal­ance of - 3.5% as com­pared to +4.8% in the pre­vi­ous quar­ter. The es­tab­lish­ments which re­ported in­creases in their busi­ness gross rev­enue in the third quar­ter of 2016 were 28.4%. In con­trast, 31.9% of es­tab­lish­ments re­ported de­te­ri­o­ra­tion. Mean­while, 39.7% of es­tab­lish­ments have stated their busi­ness gross rev­enue re­main the same.

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