Manufacturing firms more optimistic on business conditions

12% of manufacturers expect improvement.

Manufacturing firms are getting their hopes up for the sector after strong manufacturing outputs were recorded in the first three months of the year.

According to EDB Singapore, this has led to a strong business outlook for the next six months ending September 2017. A weighted 12% of manufacturers expect business conditions to
improve while a weighted 5% foresees a softer business outlook. Overall, a net weighted balance of 7% of manufacturers anticipates a favourable business situation for the period April – September 2017, compared to the first quarter of 2017.

Within the manufacturing sector, all except the general manufacturing industries cluster anticipate better business prospects. The electronics and the precision engineering clusters lead the optimism, with a net weighted balance of 16% of firms in each cluster projecting favourable business conditions.

Here's more from EDB Singapore: 

A net weighted balance of 16 per cent of manufacturers expects a higher level of output in the second quarter of 2017, compared to the first quarter of 2017. All, except the chemicals cluster, forecast higher production in the next three months.

Within the manufacturing sector, a net weighted balance of 43 per cent of firms in the precision engineering cluster projects higher level of production activities in the second quarter of 2017, compared with a quarter ago. The machinery & systems segment foresees higher production of semiconductor-related equipment while the precision modules & components segment anticipates an increase in output of bonding wire, optical instruments and metal sheets.

In the biomedical manufacturing cluster, a net weighted balance of 38 per cent of firms projects a higher level of output in the second quarter of 2017. The pharmaceuticals segment predicts higher output level with a different product-mix while the medical technology segment foresees continuous export demand for medical devices in the next three months.

A net weighted balance of 11 per cent of electronics firms expects output to rise in the next three months ending June 2017, compared to a quarter ago. The semiconductor, data storage and other electronic modules & components segments anticipate an increase in production level while the infocomms & consumer electronics segment foresees output declines.

In contrast, a net weighted balance of 2 per cent of chemical firms expects a lower production level in the second quarter of 2017, as compared to the first quarter of 2017. This is largely due to the scheduled maintenance shutdowns in the petrochemicals and petroleum segments during the quarter, which is expected to dampen production.