Firms in the services sector here are upbeat about business conditions over the next six months due to upcoming major events such as the F1 Singapore Grand Prix in October and artificial intelligence (AI)-related demand, a survey has found.

The Singapore Department of Statistics (SingStat) polled a total of 1,600 businesses which accounted for about 70 per cent of the operating revenue in their respective industry.

The poll was conducted between June and July.

They were asked to indicate their expectations of the business situation and other indicators such as operating revenue and employment.

The Business Expectations survey for the services sector released on Friday (July 31), found that a weighted 19 per cent of firms were upbeat about business conditions, while 6 per cent anticipated weaker conditions.

Among them, companies in accommodation and wholesale trade were most positive, followed by those in recreational, community and personal services, and in administrative and support services.

The accommodation industry — with a weighted balance of 28 per cent — expressed positive business sentiments owing to major events such as the Singapore Grand Prix, concerts, and seasonal travel demand, which they believe will boost visitor arrivals and occupation rates.

Meanwhile, wholesalers of telecommunications and computers, expecting enterprises to adopt AI, expressed optimism that this will drive demand for AI-optimised servers, storage and networking solutions.

Operating revenue and job forecast for Q3

A net weighted balance of 14 per cent of service industries are expecting a positive operating revenue for the third quarter of 2026.

In particular, businesses in the accommodation industry are most optimistic, anticipating higher spending stemming from tourist arrivals as well as high occupancy rates in the next three months.

This is followed by the wholesale trade industry, which expects demand for AI-related products to drive revenue growth in the third quarter.

Additionally, a weighted average of 10 per cent of service industries expect an increase in hiring activities.

Among them, businesses in the administrative and support services industry have the highest employment outlook at a weighted balance of 23 per cent.

This is due to expectations that increased cleaning, landscaping and security activities will generate demand for their services.

With the exception of information and communications industries, all other sectors are expecting to hire.

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editor@asiaone.com