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Manufacturers upbeat for second half of 2014

Singapore manufacturers expect business conditions to remain positive in the second half of this year.

SINGAPORE: In the latest survey by the Economic Development Board (EDB), a weighted 9 per cent of manufacturers expect conditions to improve, while a weighted 3 per cent foresee deterioration. This results in a net weighted balance of 4 per cent of manufacturers expecting a more favourable business situation for the six-month period ending in December.

The precision engineering cluster has the most optimistic outlook, with a net weighted balance of 11 per cent of firms projecting better business prospects - on the back of improved economic conditions in the United States and Asia.

The transport engineering cluster is the next most positive, with a net weighted balance of 10 per cent of firms projecting better business prospects. The chemicals cluster is the least upbeat - with a net weighted balance of 3 per cent of firms projecting a less favourable business situation.

In terms of output forecasts, all clusters except for biomedical manufacturing expect a higher level of output in the third quarter of 2014. Employment prospects are also expected to remain positive for the July-September period. A weighted 97 per cent of firms expect employment levels to increase or remain similar, compared to the previous three months. 

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