Manufacturing firms have moderated their expectations for the second half of this year (2H 2012) due to the the economic instability in Europe and the United States, and the slower growth in China.

According to the latest quarterly survey by the Singapore Economic Development Board (EDB), a weighted 13% of businesses expect conditions to get better, while 12% expect it to decline. Only a net weighted 1% of manufacturers anticipate a more favourable business situation in 2H 2012 - a weaker forecast than the weighted balance of 15% of the previous quarter.

The general manufacturing cluster was the most optimistic with a net weighted balance of 15%. All its sectors expect business to improve in the next 6 months.

Other industries were more moderate in their overall expectations:

• Electronics: +5%
• Biomedical manufacturing: +4%
• Chemicals: -1%
• Transport engineering: -1%
• Precision engineering: -16%