Chart of the Day: Check out transport engineering firms' weak output forecast for Q4

Around 35% of the firms expect lower activity.

The transport engineering cluster forecasts a lower level of activity in the fourth quarter of 2016, compared to a quarter ago, a new survey by the Economic Development Board revealed.

Of all the businesses, the said sector recoreded the weakest output forecast, with around 35% of transport engineering firms expecting lower activity in Q4. The marine and offshore segment expects rig-building activities and demand for oil & gasfield equipment to remain weak, amidst the low oil price environment.

This has dragged down overall output forecast of the manufacturers with only 7% of firms expecting output to increase in the fourth quarter.

Among the sectors, biomedical manufacturing cluster is the most upbeat, with a net weighted balance of 45% of firms projecting a higher level of production in the fourth quarter of 2016, compared to the third quarter of 2016. The pharmaceutical segment projects increased production in the fourth quarter, following some plant maintenance a quarter ago. The medical technology segment foresees higher output of medical devices to meet export demand from the US and EU.

Meanwhile, in the general manufacturing industries cluster, a net weighted balance of 11 per cent of firms projects a weaker production outlook as orders in the printing and miscellaneous industries segments dwindle on the back of weak economic conditions.