Manufacturers insist bearish view on business conditions

20% sees depressing situations ahead.

According to Singapore Economic Development Board's "Survey of Business Expectations of the Manufacturing Sector,'' business sentiments in the manufacturing sector is expected to soften in the next six months ending March 2013, on the back of a prolonged Eurozone crisis and a significant economic slowdown in China.

Here's more from EDB:

The latest survey shows that a weighted 9 per cent of manufacturers expects business conditions to improve while a weighted 20 per cent foresees deterioration.

Overall, a net weighted balance of 11 per cent of manufacturers anticipates a less favourable business situation in the period October 2012 – March 2013, compared to the third quarter of 2012.

Within the manufacturing sector, the general manufacturing industries cluster is the most optimistic, with a net weighted balance of 9 per cent of firms anticipating an improved business situation in the six months ahead.

The food, beverages & tobacco segment predicts more orders in anticipation of the upcoming festive seasons while the miscellaneous industries segment continues to be supported by strong domestic construction activities.

The biomedical manufacturing cluster also expects a positive business outlook largely due to the medical technology segment which is expecting some new products launches in the next six months ending March 2013.

The electronics and precision engineering clusters are the least upbeat about business prospects in the next two quarters compared to the third quarter of 2012.

A net weighted balance of 26 per cent of electronics firms projects a less favourable business situation. In particular, sentiments among the semiconductor manufacturers have turned negative in view of sustained weakness in electronics demand.

In the precision engineering cluster, a net weighted balance of 22 per cent of manufacturers expects business conditions to decline on the back of a weak macro-economic environment and lackluster electronics demand.