Singapore’s services sector is maintaining a positive outlook for the first half of 2026, according to the latest Business Expectations Survey by the Singapore Department of Statistics. The survey reveals that 15% of firms anticipate improved business conditions, whilst 11% foresee a decline, resulting in a net weighted balance of 4% expecting a favourable outlook.
The Retail Trade industry is particularly optimistic, buoyed by the upcoming Chinese New Year festivities. Supermarkets are leading this positive sentiment, expecting increased consumer spending. Similarly, the Wholesale Trade industry is hopeful, driven by the ongoing Windows 11 refresh and corporate hardware renewals, alongside growth in Artificial Intelligence-related products.
The Recreation, Community & Personal Services industry also projects a positive outlook, with childcare centres and health services providers expecting sustained demand. However, the Transportation & Storage industry anticipates challenges due to an oversupply of vessels and weakening cargo demand, compounded by global economic uncertainties and geopolitical tensions.
For the first quarter of 2026, the services sector expects a 3% net weighted balance increase in operating revenue. Retail and Recreation, Community & Personal Services industries foresee higher revenues, with the former benefiting from festive spending and the latter from increased demand for healthcare and childcare services.
Employment prospects are also promising, with a net weighted balance of 8% of firms planning to increase hiring. The Retail Trade and Recreation, Community & Personal Services industries are expected to lead this trend, preparing for heightened demand during the festive season and beyond.
