Brunei Darussalam Central Bank (BDCB) today published Brunei Darussalam's Business Sentiment Index (BSI) for July 2026. The index is based on monthly surveys of approximately 500 micro, small, medium, and large businesses across 11 economic sectors in all districts of Brunei Darussalam. 

The BSI measures the level of business confidence/sentiment in the country, covering various aspects, including current and future business conditions, investment, employment of workers, as well as costs of running the business. With its forward-looking approach, the BSI could serve as a leading macroeconomic indicator for the country. 

Since its launch in August 2020, BDCB has undertaken a review of the BSI methodology to enhance the robustness, consistency and analytical value of the index. While the BSI was expressed on a scale of 0 to 100 under the previous methodology, the calculation constrained the index to a narrow range of 49.0 to 51.0. Following the revision, the methodology now allows the BSI to fully utilise the 0.0 to 100.0 scale. In addition, instead of defining neutrality at a fixed value of 50.0, values between 45.0 and 55.0 are now considered neutral. This enhancement improves the index's sensitivity and interpretability, enabling clearer identification of shifts in sentiment. 

This revision does not affect the economic interpretation of past results, as the underlying sentiment captured by the index remains unchanged. To ensure consistency and comparability over time, historical BSI data have been recalculated using the revised methodology and published in the Statistical Bulletin available on the BDCB website.

The BSI and sub-indices can be interpreted as below:

The headline index, the Current Business Conditions sub-index, stood at 59.9 in July 2026, indicating that businesses generally expected conditions to improve in July compared to the previous month. This optimism was driven by expectations of increased project activities, stronger customer orders, and higher production. Several businesses also anticipated a boost in sales and business activity tied to His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah ibni Al-Marhum Sultan Haji Omar ‘Ali Saifuddien Sa’adul Khairi Waddien, Sultan and Yang Di-Pertuan of Brunei Darussalam’s 80th birthday celebrations. Nonetheless, optimism was partially tempered by a softer sales outlook among some businesses reporting slower sales amid cautious consumer spending, while others anticipated delays in project approvals and awards. Looking ahead, the one-month (1M) ahead sub-index stood at 45.1, falling within the neutral threshold and indicating that businesses generally expect conditions to remain stable in August 2026. While some businesses foresee improved activity from new projects, higher orders, and increased production, this optimism is offset by concerns over softer demand during the school holiday period, continued weakness in consumer spending, and the easing of festive activities observed in July 2026.

The Investment sub-indices continued to indicate optimistic sentiment, with the current month at 75.9, the 1M ahead index at 77.7, and the three-month (3M) ahead index at 76.2. Positive sentiment in the current month was mainly driven by capital expenditures related to business expansion, purchases of machinery and equipment, technology upgrades, and ongoing infrastructure development. Looking ahead, businesses expected investment spending to remain robust over the coming months, supported by ongoing project implementation, planned business expansion, and infrastructure development initiatives across several sectors.

The Employment sub-index stood at 49.4 for the current month, while the 1M ahead index stood at 52.7, indicating broadly stable employment conditions. Several businesses reported undertaking recruitment efforts to support ongoing projects, business expansion plans, and operational requirements. However, these increases were largely offset by staff resignations, retirements, contract completions, and workforce adjustments reported by other businesses. Looking ahead, while some businesses plan to increase hiring in the near term, most anticipate little change in their overall workforce. 

The Costs sub-index stood at 32.3 for the current month, indicating that businesses expected lower operating costs in July 2026 compared to the previous month. The lower cost outlook was mainly attributed to reduced staffing expenses and material purchases, and the normalisation of expenditures following key events and activities in previous months. Looking ahead, the 1M ahead sub-index increased to 59.0, indicating that businesses expect operating costs to rise slightly in August 2026. This was mainly associated with higher project-related expenditures, material purchases, and rising logistics costs.

Note: 1M – one month, 3M – three months

In terms of economic sectors:

In terms of business size:

For more information on the BSI, members of the public can refer to the technical notes on the methodology and statistics on the BDCB website at www.bdcb.gov.bn and follow updates on the BSI through future press releases and BDCB’s Instagram account @centralbank.brunei

Business Sentiment Index (BSI) For Brunei Darussalam For July 2026

Business Sentiment Index (BSI) For Brunei Darussalam For July 2026 (MY)