Business confidence in Singapore has seen a notable rebound in the second quarter of 2026, according to the Singapore Business Federation’s National Business Survey. The survey, which included responses from 511 businesses across various sectors, highlighted a 2.0-point increase in the Business Sentiment Index (BSI), bringing it to 53.3. This recovery follows a decline in the first quarter and is attributed to resilient domestic growth and strong momentum in Artificial Intelligence (AI).
The survey revealed several key shifts in business sentiment. Growth confidence improved by 1.5 points to 57.1, whilst profitability expectations saw a significant rise of 5.1 points, reversing the sharp decline experienced in the first quarter. Employment expectations also showed a slight improvement, with a 1.2-point increase to 56.3.
The survey’s findings indicate that businesses are cautiously optimistic about the future, with fewer expecting conditions to worsen over the next 12 months. However, sectors such as Retail Trade, Health & Social Sciences, and Education remain more cautious about the business outlook.
The BSI measures business confidence in Singapore, providing insights into trends such as cost and revenue expectations, hiring, and business expansion. Despite the positive outlook, ongoing energy-market pressures and uncertainty surrounding US trade policy may temper further optimism.
Looking ahead, businesses in Banking & Insurance, Health & Social Services, and other financial activities are more optimistic, whilst those in Retail Trade, Education, and Wholesale Trade are less upbeat. The survey underscores the importance of AI and domestic growth in driving business confidence in Singapore.
