By Ronnie Harui
SINGAPORE--Singapore's manufacturers have a cautiously positive view of the first half of 2024, as the resurgent global semiconductor industry lends support to demand, even amid continued geopolitical and economic headwinds, a survey showed.
A weighted 21% of the manufacturers surveyed expect business conditions to improve over January-June, while 11% foresee a weaker business outlook, the Singapore Economic Development Board said Wednesday. That leaves a net weighted 10% of manufacturers anticipating improvements in the six-month period compared with the fourth quarter of 2023, the EDB added.
Most segments within manufacturing expect an improved business situation for the first half of the year, the EDB said.
The electronics sector is the most optimistic, driven by the semiconductors segment, which expects a gradual recovery in demand as inventory levels in end-markets normalize as well as robust demand for artificial-intelligence-related chips, the EDB added.
In transport-engineering, a net weighted 14% of companies predict that positive business conditions will continue in the first half, the EDB said. That sentiment is driven by the marine and offshore engineering segment, which continues to see robust orders from the oil, gas and renewable-energy industries, the EDB added.
In the precision engineering sector, a net weighted 8% of companies foresee a positive business environment for the January-June period compared with the fourth quarter, the EDB said. Expectations of a recovery in the semiconductor industry led to optimism from both the machinery and systems segment and the precision modules and components segment.
Write to Ronnie Harui at ronnie.harui@wsj.com
(END) Dow Jones Newswires
01-31-24 0016ET
