Singapore industrial production weakened in November, with output falling 7.8 percent on the month after advancing 9.9 percent in October. Previously published trade data also showed weaker growth in exports in November, whereas PMI survey data showed stronger conditions in the aggregate economy. In year-over-year terms, industrial production rose 1.0 percent on the year in November after an increase of 7.6 percent in October.

Excluding the biomedical industry, where output is often volatile, year-over-year growth also slowed from an increase of 7.4 percent in October to an increase of 1.9 percent in November. This partly reflects weaker growth in the electronics sector, with output there up 7.3 percent on the year after advancing 15.1 percent previously. Output growth also weakened in the precision engineering, transport engineering, and general manufacturing industries, but strengthened in the chemicals industry.

Industrial production in Singapore is expected to post its first month-over-month drop in three months in November, down 5.0 percent, after rising 9.8 percent in October and 13.1 percent in September. Output is seen up 2.2 percent on the year, slowing from October's 7.4 percent rebound, which was the first year-over-year increase in 13 months.

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.