Singapore's services sector sees better times ahead as it expects improved business climate in the second half of the year.

About 28 per cent of the business in the services sector polled sees a brighter outlook in the six months to December.

This is higher than the 23 per cent net weighted balance of service sector businesses registered in the same period of last year, that is from July to December 2006, and the net weighted balance of 22 per cent recorded for the April to September 2007 period.

Releasing the findings of the business expectations survey for the services sector for the third quarter, the Department of Statistics said today that wholesalers project a healthy business outlook. A positive net weighted balance of 28 per cent of them were optimistic for the July to December 2007 period.

Dealers of tropical produce, clothing and footwear, cosmetics and toiletries, household electrical appliances and equipment and stationery, books and magazines were among those who said that they expect an increase in business in the second half of the year.

However, only a net weighted balance of two per cent of retailers forecast their business to pick up in the six months ending December 2007.

The statistics department said that in the transport and storage industry, a net weighed balance of 17 per cent of firms predict an increase in business activity in the second half of the year.

Hoteliers were upbeat about their business conditions ahead, with 62 per cent seeing better days ahead.

Similarly, 66 per cent of the firms in catering project a favourable business outlook in the second half of the year.

As for the information and communications industry, a net weighted balance of 23 per cent of firms see an increase in demand for their services over the July to December period.

Business sentiments are generally positive in the financial services industry, the statistics department said.

Firms in the real estate industry, especially read estate developers and agents, are optimistic about their business conditions with a net weighted balance of 65 per cent of real estate firms looking forward to brisk business ahead.

Overall, the services sector said both earnings and employment levels in the third quarter of this year would improve over the preceding quarter.