Manufacturing, services firms downbeat on H1 outlook

Singapore

THE recent slump in global oil prices has weakened expectations of many manufacturing firms as they anticipate a fall in revenue.

According to results of the latest government surveys released on Friday, a net weighted balance of 3 per cent of manufacturers expect business conditions to deteriorate from the fourth quarter of last year. The net balance is calculated by deducting the proportion of those with negative business expectations from those with positive expectations.

Firms in the transport engineering cluster were the least optimistic about prospects for January to June 2015, with a net weighted balance of 20 per cent expecting poorer business. In particular, the marine and offshore engineering segment foresees declining orders as oil and drilling firms cut back on capital expenditure due to fallin…