Singapore's manufacturing sector remained optimistic about business conditions for the July-December period, though confidence eased from the previous survey, according to data released by the Singapore Economic Development Board on Friday.
The net weighted balance stood at 12%, missing the 14% consensus forecast tracked by Trading Economics.
The reading was also down from 17% in the April-September survey.
The precision engineering cluster was the most optimistic, posting a net weighted balance of 55%, followed by electronics at 19%, while chemicals was the most pessimistic as firms continued to anticipate feedstock supply disruptions from the Middle East.
Looking ahead, the output forecast for the third quarter showed a net weighted balance of 26%, led by precision engineering, electronics, and transport engineering.