Transport manufacturers predict bearish operations in H2

Only the aerospace segment sees optimistic conditions.

Whilst majority of manufacturers expect the business environment to remain similar to a quarter ago, manufacturers from the transport engineering segment see conditions to deteriorate.

According to the Singapore Economic Development Board (EDB)'s Business Expectations of the Manufacturing Sector report, a net weighted balance of 2% of the transport engineering firms see a less favourable operating environment in the second half of 2017, compared to the second quarter of 2017.

"In the transport engineering cluster, all segments expect a soft business outlook ahead except for the aerospace segment, where a majority of firms projects business situation to remain similar to the preceding quarter," EDB noted

It was the same story with general manufacturing firms, with a net weighted balance of 12% foreseeing a less stable environment.

"In particular, firms in the miscellaneous industries segment continue to be weighed down by the weak domestic construction activities," EDB said.

Overall, the majority of firms, a weighted 80%, expects the business environment in the second half of 2017 to remain similar to a quarter ago. A weighted 12% of manufacturers expect business conditions to improve while a weighted 8% foresees a softer business outlook

Within the manufacturing sector, the biomedical manufacturing cluster is the most optimistic, with
a net weighted balance of 14% of firms anticipating an improved business situation in the second half of 2017, compared to the second quarter of 2017. This positive sentiment is mainly due to higher order expectations in the medical technology segment in the months ahead.

Meanwhile, the precision engineering and electronics clusters continue to show optimism, with a net weighted balance of 10 per cent and 7 per cent of firms in the respective clusters predicting favourable business conditions in the second half of 2017, compared to a quarter ago.