9 in 10 manufacturers bearish on business activity
They are blaming the Eurozone and US crisis as well as China slowdown.
According to Singapore Economic Development Board's Business Sentiments 2H12, business sentiments in the manufacturing sector is expected to moderate in the next six months, compared to the second quarter of 2012. The latest survey shows that a weighted 13 per cent of manufacturers expect business conditions to improve while a weighted 12 per cent foresee deterioration.
Here's more from EDB:
Overall, a net weighted balance of 1 per cent of manufacturers anticipate a more favourable business situation in the second half of 2012 compared to the second quarter of 2012. This is weaker than the weighted balance of 15 per cent recorded in last quarter's survey. Firms generally expressed caution over economic uncertainties in Europe and the United States, as well as the possibility of further slowdown in China.
The general manufacturing cluster is the most optimistic, with a net weighted balance of 15 per cent of firms expecting better business prospects in the second half of 2012, compared to the second quarter of 2012. Within the cluster, the other manufacturing industries segment is the most upbeat, expecting support from public sector construction activities.
In the electronics cluster, a net weighted balance of 5 per cent of manufacturers predict an improved business outlook in the next six months, compared to a quarter ago. This sentiment is significantly weaker than the weighted balance of 30 per cent recorded in the last quarter's survey. Most electronics segments project business conditions to be weaker in the second half of 2012. The data storage segment expects the surge in demand for hard disk drives that resulted from the supply chain disruptions in the wake of the Thailand floods, to ease in the second half of the year. On the positive side, semiconductor firms anticipate chip orders to be sustained by strong demand for smartphones and other mobile computing devices.
Majority of firms in the biomedical manufacturing and transport engineering clusters expect business conditions in the next six months to remain similar to a quarter ago.
A net weighted balance of 1 per cent of chemicals firms foresee a less favourable business situation in the next six months of the year, compared to a quarter ago. While falling oil prices have reduced feedstock prices, firms expect their margins to remain pressured by uncertainties in global demand.
The precision engineering cluster is the least upbeat, with a net weighted balance of 16 per cent of firms anticipating that business conditions will deteriorate in the next six months ending December 2012, compared to a quarter ago. Both segments in the cluster project weaker business conditions mainly due to uncertainties in the European and US markets.