Singapore manufacturers worried by U.S. economy, electronics demand<\/p>\n
Agence France-Presse, Singapore<\/p>\n
Singapore's manufacturers have become gloomier about business
\nprospects for the rest of the year due to uncertainties about the
\nU.S. economy and softer than expected electronics demand, an
\nofficial survey showed Thursday.<\/p>\n
\"Manufacturers are less upbeat about the business situation in
\nthe second half of 2002 compared to a quarter ago,\" the Economic
\nDevelopment Board (EDB) said in a summary of a survey of some 400
\ncompanies conducted in June and July.<\/p>\n
Just 25 percent of the industrialists polled expected an
\nimprovement in the business climate, compared to 39 percent a
\nquarter ago. Those expecting business conditions to worsen
\nescalated to 15 percent, from seven percent.<\/p>\n
The EDB said the crucial electronics industry was less
\noptimistic despite an upswing in manufacturing activities in
\nrecent months, expecting global electronics demand to recover at
\na slower pace than earlier expected.<\/p>\n
Businesses and consumers overseas remain cautious in
\ninformation technology spending, an EDB statement said.<\/p>\n
Sentiment was also down among chemicals firms, including
\npetroleum refining and petrochemicals, but in the biomedical
\nsciences industry, the economy's brightest area, most companies
\nexpected robust business conditions to continue into the second
\nperiod.<\/p>\n
Nevertheless, 73 percent of the respondents planned to invest
\nin plants and machinery in the next 12 months.<\/p>\n
The survey also showed price competition from foreign
\ncompetitors remained \"the most important factor limiting
\nindustrialists' ability to obtain more export orders\" in the
\nthird quarter this year.<\/p>\n
\"Economic uncertainties especially in the U.S. would continue
\nto affect export orders in the third quarter of 2002,\" it said,
\nadding this sentiment was especially significant for the
\nelectronics sector.<\/p>\n
Singapore has rebounded from its worst recession since the
\n1960s but businessmen and consumers remain wary.<\/p>\n
Last month, the Monetary Authority of Singapore said gross
\ndomestic product for the full year is likely to grow at the upper
\nend of the official forecast range of between 2.0-4.0 percent.<\/p>\n
Advance estimates released last month showed GDP grew a
\nbetter-than-expected 3.2 percent in the June quarter, driven by
\nthe non-electronics sector, following a 1.5 percent contraction
\nin the first quarter.<\/p>\n
Singapore's export-dependent economy contracted 2.0 percent
\nlast year after posting 10 percent growth in 2000.<\/p>",
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