Marine and offshore firms extremely downbeat about prospects in Q2

Blame it on low oil prices.

Marine and offshore firms are extremely downbeat about their business prospects in Q2, in spite of the fact that overall business sentiments in the manufacturing sector improved during the quarter.

According to the Economic and Development Board (EDB), the transport engineering cluster is the least optimistic about business prospects in the next six months, compared to a quarter ago.

This is largely led by the marine and offshore engineering segment, which foresees weaker orders due to a slowdown in offshore exploration and drilling activities on the back of low oil prices.

However, overall business sentiments in the manufacturing sector are expected to be positive in the next six months ending September 2015. 

A weighted 13% of manufacturers expects business situation to improve while a weighted 8 per cent foresees deterioration. Overall, a net weighted balance of 5% of manufacturers expects an improved business situation for the period April – September 2015, compared to the first quarter of 2015.