OCBC SME Index: Which sector performed best in Q2?

The top sector's reading jumped to 52.8 in Q2 from 50.9 in Q1.

Small and medium enterprises (SMEs) across all industries saw improved performance in Q2, but one sector outperformed the rest, according to the OCBC SME Index.

Based on the index, SMEs in the Business Services segment received the highest reading for Q2 at 52.8; this also represents a jump from the segment's Q1 record of 50.9.

“All the Business Services sub-sectors benefited greatly from the resumption of business travel in 2Q 22 and growing rebound in the regional economies,” said OCBC.

Amongst the sub-sectors of Business Services, Advertising and Exhibitions posted the biggest expansion (53.7), followed by Business Consultancy (52.2).

Meanwhile, Accounting and Legal went from contraction (49.4) to expansion (51.8) in Q2 on the back of a 50% increase in collections YoY.

Besides Business Services, Manufacturing (51.0 to 52.5) and Wholesale Trade (51.4 to 52.1) also posted stronger performances in Q2.

The growth in the manufacturing sector was led by Consumer Products (52.5) with a 21% increase in collections YoY.  Precision Engineering also registered a healthy 52.2 with a 12% increase in collections YoY.

On the other hand, the electronics and semiconductors segment was in contractionary territory in Q2 at 49.6. OCBC, however, said the sub-sector will see improvement in the second half of the year.

Overall, the OCBC SME Index was at 52, a jump from 50.5 in Q1.

“The positive impact of the local reopening was broad-based but was moderated by the continued rise in prices for food, commodities and services arising from the protracted conflict in Ukraine as well as the lockdowns in China,” OCBC said.