KUALA LUMPUR (Nov 23): Business confidence indicator increased by 3.2% in the fourth quarter of 2023 (4Q23), up from 0.7 per cent in 3Q 2023 as businesses anticipate a better business situation in the fourth quarter.

Chief statistician Malaysia Datuk Seri Dr Mohd Uzir Mahidin said in a statement on Thursday that services, industry and construction are the three sectors that anticipate better business conditions in the fourth quarter of 2023.

“The business confidence for the services sector remains on a positive trajectory, with the confidence indicator increasing to 6.3% against 6.1% in the last quarter.

“Meanwhile, the industry sector continues to be optimistic about business performance with a confidence indicator of 4.0% for the corresponding quarter compared to 1.3% in the third quarter of 2023,” he said.

He said sentiments within the construction sector reverted to a positive trajectory for the first time since the first quarter of 2018 as it notched 1.7% against −26.9% in the third quarter of 2023.

However, Mohd Uzir said businesses within the wholesale and retail trade sector expect a pessimistic business outlook, with a confidence indicator of −3.6% in the fourth quarter of 2023 as opposed to −1.5% in the last quarter.

“Looking ahead, the business outlook for the period of October 2023 until March 2024 remains upbeat despite moderating, with a net balance of 9.8% against 13.9% recorded previously, with all sectors registering positively except wholesale and retail trade.

“Sentiments in the services sector remain positive with a net balance of 19%. For the next six months, all sub-sectors under the services sector anticipate a positive business environment. The industry sector also foresees a brighter business outlook with a net balance of 7.5% for the period of October 2023 until March 2024,” he said.

After soaring to a positive trajectory in the second half of 2023, he said the construction sector continues to improve significantly, with a net balance of 27.6% for the upcoming six months.

He said wholesale and retail trade expects a challenging business outlook for the following six months with a net balance of −4.6%.

“This scenario is due to the pessimist sentiment from the wholesale trade sub-sector. Nevertheless, the retail trade subsector rebounded to a positive trajectory by recording 3.0% for the expected six months ahead compared to −12.4% recorded previously,” he added.