Majority of manufacturers expect business environment in H2 to remain similar to Q2

A MAJORITY of companies - a weighted 80 per cent - in the manufacturing sector expect business environment in the second half of 2017 to remain similar to a quarter ago, said the Singapore Economic Development Board on Monday.

Overall, a net weighted balance of 4 per cent of manufacturers anticipate a favourable business situation for the period July to December 2017, compared with the second quarter of 2017.

The most optimistic cluster within the manufacturing sector is biomedical manufacturing, as it expects higher orders in the medical technology segment in the months ahead. As much as a net weighted balance of 14 per cent of firms in the cluster anticipate improvement in business conditions in H2 2017.

Precision engineering and electronics clusters continue to show optimism, while transport engineering and general manufacturing industries have net weighted balances expecting a less favourable operating environment.

All manufacturing clusters, except general manufacturing, forecast a rise in output in the third quarter of 2017.

A net weighted balance of 5 per cent of manufacturers plan to hire fewer workers in Q3 than in Q2, led by the transport engineering and general manufacturing industries clusters.