Business slowdown in Q2 2016

Syndicated News
Written by Syndicated News

KUALA LUMPUR, May 31 2016 : Business in the second quarter 2016 is expected to slow down, as shown by the confidence indicator of -3.7 per cent as compared to -0.7 per cent in the preceding quarter, said the Department of Statistics.

The confidence indicator summarises the overall views on the short-term business situation in various sectors in Malaysia, the department said in a statement today.

It said the business performance for all sectors — construction, wholesale and retail trade, services and industry — is expected to decline in the second quarter of 2016 with a confidence indicator of -14.5 per cent, -8.2 per cent, -3.7 per cent and -1.8 per cent, respectively.

In terms of number of employees, 16 per cent of establishments forecast an increase with 11.8 per cent predicting a decrease in the second quarter of 2016.

The magnitude of the positive net balance for the number of employees in the second quarter of 2016 was lower (+4.2 per cent) than the +7.1 per cent registered for the first quarter of 2016, it added.

The department said business performance in the first quarter 2016 was much better with an overall net balance of all sectors of -6.4 per cent as compared to -8.3 per cent in the previous quarter.

“A significant majority of establishments (63.0 per cent) reported the current situation of their business as remaining the same, while 15.3 per cent reported an improvement and 21.7 per cent reported less favourable conditions,” it added. – Bernama



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