A survey by the Singapore Economic Development Board (EDB) on the business sentiments in the manufacturing industry indicates that the sector is pessimistic about the next 6 months. A net weighted 11% of them expect demand to soften.

This comes as continuing uncertainty about the global economy dampens the outlook.

According EDB, a weighted 7% of manufacturers expect business to improve in contrast to 18% who do not.

These clusters indicated a less favourable outlook for 1H 2012 compared with the previous quarter (October to December 2011):

• Electronics: -22%
• Precision engineering: -13%
• Transport engineering: -11%
• Chemicals: -5%
• General manufacturing: -3%
• Biomedical: -2%

EDB also reported that output for the next 3 months is expected to contract. A net weighted 7% expect output to decrease in Q1 2012 compared with the previous quarter.

Only the chemicals (+13%) and transport engineering (+4%) clusters forecast favourable conditions for Q1 2012 compared with the previous quarter (October to December 2011).

The poorer outlook is expected to lower employment prospects. Overall, a net weighted 2% of manufacturers expect to lower employment in Q1 2012. A weighted 9% plan to hire, while a weighted 11% indicate possible layoffs.