Business confidence for the fourth quarter of 2022 (4Q2022) is upbeat at +3.2% with the services sector, industry, wholesale and retail trade, registering a positive outlook, said the Department of Statistics Malaysia (DOSM), adding that the construction sector continued to be the most pessimistic.

In a statement on Tuesday (Nov 29), DOSM said business sentiment in the services sector remains favourable at +9.2% in 4Q2022 (3Q2022: +13.6%), while it was +3.7% (3Q2022: +6.6%) for the industry sector.

It said that the wholesale and retail trade sector expects an improved business situation as the confidence indicator rebounded to a positive trajectory at +1.9% in 4Q2022 from -5.8% in 3Q2022, DOSM said.

“This positive outlook is supported by the retail trade sub-sector where businesses turned optimistic on their business conditions,” it added.

DOSM also revealed that the construction sector continues as the most pessimistic sector with a confidence indicator of -29.2% in 4Q2022 from -24.9% in 3Q2022.

The statistics are based on the Business Tendency Survey, which is conducted on a quarterly basis.

The confidence indicator registering +3.2% in 4Q2022 is a downward moderation compared to +4.7% recorded in 3Q2022.

In terms of gross revenue, DOSM said 32.5% of overall establishments predicted their gross revenue to increase in 4Q2022, 29.5% foresee otherwise and 38% projected it would remain the same.

It added that 68.9% of establishments expect their number of employees to remain unchanged in 4Q2022, 21.8% aim to hire more workers but 9.3% anticipate a reduction of their workers.

For business performance in the next six-month period (4Q2022 to 1Q2023), DOSM said business expectations are optimistic with moderate net balance at +5.9% (3Q2022-4Q2022: +12.2%).

It said the wholesale and retail trade sector foresees a favourable business outlook in the forthcoming six months with a net balance of +10.6%, from a negative trajectory.

“Services sector also expects a better business situation with a net balance of +30.8% from +26.5% recorded previously.

“All sub-sectors under the services sector predict a positive outlook for the next six months with insurance, accommodation as well as health sub-sectors being the most optimistic sub-sectors,” DOSM said. 

In contrast, DOSM highlighted that the industry sector turned pessimistic on business prospects for 4Q2022 to 1Q2023 with net balance of -7.9% from +14.5% in the previous six months.

Sentiments within the construction sector also remained negative for 4Q2022 to 1Q2023 with a net balance of -20.7% (3Q2022-4Q2022: -10.3%), it said.

Read more here: https://www.theedgemarkets.com/article/business-confidence-grows-32-4q2022-spurred-services-industry-wholesale-and-retail-trade

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