Singapore industrial production growth fell on the month in January, with year-over-year growth remaining stable but negative. Previously published PMI data showed a small improvement in conditions in the aggregate Singapore economy in January, while trade data showed a fourth consecutive year-over-year fall in exports.

Industrial production fell 1.1 percent on the month in January after advancing 2.9 percent previously, continuing the volatility in output seen over 2022. Output fell 2.7 percent on the year after declining 2.6 percent previously, with this weakness driven by year-over-year declines in output in the electronics, general manufacturing, chemicals and precision engineering industries. In contrast, output in the biomedical industry, where production is often subject to high volatility, rose 23.2 percent on the year in January after falling 20.3 percent in December. Output in the transport engineering industry also rose on the year.

The industrial production index measures changes in the volume of industrial production with respect to the base year. The index charts the growth in production of each major industry and of the manufacturing sector. Industrial Production measures the physical output of the nation's factories, mines and utilities. Factories manufacture various products, and the industrial production indexes have been prepared as a comprehensive indicator of wide-ranging production activities for such products and are regarded as some of the most important among economic indexes.

Investors want to keep their finger on the pulse of the economy because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers more subdued growth that won't lead to inflationary pressures. By tracking economic data such as industrial production, investors will know what the economic backdrop is for these markets and their portfolios.

Industrial production provides key industry data for export-dependent economies. It is highly sensitive to the business cycle and can often predict future changes in employment, earnings and income. For these reasons industrial production is considered a reliable leading indicator that conveys information about the overall health of the economy. This report has a big influence on market behavior. In any given month, one can see whether capital goods or consumer goods are growing more rapidly. Detailed data in the report shows which sectors of the economy are growing and which are not.