The index is based on transaction data of the bank's SME customers in Singapore. A reading above 50 signifies improved health, while a score of below 50 shows deterioration.
Export-oriented SMEs, notably those in the transport and logistics, wholesale trade, and resources sectors turned expansionary after six consecutive quarters in contraction.
The bank noted that 47 percent of the 800 business owners surveyed expect their business to perform better over the next six months, lower than the 51 percent recorded in the previous quarter.
Another 40 percent expected the business to remain the same, while the rest expected a weaker near-term outlook. Across industries, SME business confidence was lower in consumer-facing sectors such as food and beverage, and retail.
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