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<\/figure>\n\n\n\nBased on the report released<\/a>, here are 4 business trends observed in Singapore.<\/p>\n\n\n\n Among the 11 sectors tracked by the OCBC SME Index, the Food & Beverage (F&B) and Transport & Logistics sectors show the most positive outlook, both scoring 51.2.<\/p>\n\n\n\n F&B’s growth was driven by solid expansions across all key segments this quarter. F&B Services recorded a reading of 50.7, F&B Retail scored 52.1, and F&B Wholesale Trade continued its steady upward trend, rising to 51.3.<\/p>\n\n\n\n Despite this strong performance, SMEs in the F&B sector still face significant challenges, particularly rising operating costs and daily expenses. According to the OCBC SME Business Outlook poll, 41% of F&B respondents identified manpower shortages as a major challenge for the next six months.<\/p>\n\n\n\n The Transport & Logistics sector also improved, with a reading of 51.2 this quarter, up from 50.6 in Q2, reflecting a resilient recovery in the industry.<\/p>\n\n\n\n Growth in the Transport & Logistics sector was primarily driven by strong performance in the Logistics segment, which registered a reading of 52.6. This improvement is partly due to increased factory output and positive manufacturing sentiment, reflecting the complexities of the global supply chain.<\/p>\n\n\n\n Meanwhile, the contraction in Sea Transport lessened this quarter, with its reading narrowing to 49.6. This was largely influenced by port congestions and delayed shipments, caused by diversions in the Red Sea.<\/p>\n\n\n\n As compared to 2Q2024 when only 7 out of 11 sectors were positive and 1Q2024 when only 3 sectors were positive, 3Q2024 saw 10 out of 11 sectors feeling positive on the current business environment.\u00a0<\/p>\n\n\n\n This includes the manufacturing sector, which shifted to expansion after five consecutive quarters of contraction, driven by increased factory activity and improved business sentiment. Similarly, the Building & Construction sector experienced a slight improvement, with its reading rising from 49.8 in Q2 2024 to 50.4 this quarter.<\/p>\n\n\n\n In the 3Q 2024 OCBC SME Business Outlook poll, 4 in 10 respondents reported improved business performance compared to three months ago. This reflects a higher proportion than the 35% reported in Q2 2024, aligning with the rise in the OCBC SME Index. Notably, 45% of SMEs in the Building & Construction sector experienced better business activity, the highest across all industries.<\/p>\n\n\n\n Looking ahead, business confidence among SME owners remains steady compared to the previous quarter. Of the 1,100 respondents surveyed, 48% expect their business to perform better over the next six months, 40% expect conditions to stay the same, and 11% foresee a weaker near-term outlook.<\/p>\n\n\n\n For the ninth consecutive quarter, the Information and Communications Technology (ICT) industry remained in contraction, with the index dipping to 48.7 in Q3 2024. While there were expansions in IT Consultancy (50.2) and ICT Manufacturing and Sales (50.5), these gains were offset by weaknesses in the Data Processing and Software Development segment, which fell to 48.1.<\/p>\n\n\n\n Despite the slowdown in business activity, ICT business owners were relatively optimistic about the near-term outlook compared to other industries. In fact, 53% of respondents expect business conditions to improve over the next six months, while only 9% anticipate a decline.<\/p>\n\n\n\n You can read the 3Q OCBC SME Index full report here<\/a>.<\/p>\n\n\n\n#1 F&B & Transport & Logistics Are Seeing Healthy Business Activities<\/h3>\n\n\n\n
![\"\"](\"https:\/\/dollarsandsense.sg\/business\/wp-content\/uploads\/2024\/10\/OCBC-SME-Index_FB.png\")
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<\/figure>\n\n\n\n#2 10 Out Of 11 Business Sectors Are Positive<\/h3>\n\n\n\n
![\"\"](\"https:\/\/dollarsandsense.sg\/business\/wp-content\/uploads\/2024\/10\/OCBC-SME-Index-Sectors.png\")
<\/figure>\n\n\n\n#3 Respondents Saw Improved Business Performance This Quarter<\/h2>\n\n\n\n
#4 ICT Remains In Contraction<\/h3>\n\n\n\n
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