The services sector is expecting business to slow down in 1H 2012 compared with the previous quarter. A net weighted 25% of businesses foresee less favourable conditions.

According to the quarterly Business Expectations Survey (Services Sector) First Quarter 2012, a weighted 10% of firms anticipated improvement, a weighted 55% anticipated no change and 35% anticipated a poor outlook.

The survey, conducted by the Department of Statistics (DOS) showed that only recreation, community and personal services (+9%) were optimistic about prospects in the coming 6 months. The net weighted balance for all other services clusters indicated less optimism:

• Real estate: -60%
• Financial and Insurance: -52%
• Retail trade: -29%
• Accommodation: -29%
• F&B services: -27%
• Wholesale trade: -19%
• Information and communication: -16%
• Business services: -15%
• Transport and storage: -14%

The outlook for Q1 2012 is also less optimistic. A weighted 63% expect receipts to remain the same, a weighted 11% expect higher turnover and a weighted 26% expect poorer conditions. This works out to a net weighted 15% that anticipate less operating receipts in Q1 2012.

As for employment, a net weighted 4% foresee a decline.