Manufacturing, services firms in S'pore upbeat about second half

Demand in semiconductors, increased travel among reasons for cheer, two surveys show

- Sue-Ann Tan

Manufacturing and services companies here expect business conditions to improve from July to December, compared with the second quarter of 2024.

This is on the back of growing demand in semiconductors, increased travel and consumer spending, two surveys out on July 31 showed.

A net weighted balance of 23 per cent of manufacturing firms anticipate an improved business situation for the months ahead, according to a study by the Economic Development Board (EDB). They also expect higher output in the third quarter of 2024, compared with the second quarter.

Among services companies, a net weighted balance of 13 per cent of companies expect a more favourable business outlook, a survey by the Singapore Department of Statistics (SingStat) showed. They also foresee higher revenue from July to September.

The net weighted balance is the difference between the weighted shares of positive and negative responses, with a positive figure indicating more optimism than pessimism.

Within the manufacturing sector, all clusters except biomedical manufacturing see better business prospects for the rest of 2024.

The electronics cluster is the most upbeat, with a net weighted balance of 40 per cent of firms projecting improved business conditions in the second half of 2024.