Singapore industrial production rebounded sharply in April, with output increasing 7.1 percent on the month after falling 16.0 percent in March. Previously published trade data also showed a rebound in exports in April, while PMI survey data showed slower growth in the aggregate economy.

In year-over-year terms, industrial production fell 1.6 percent in April after dropping 9.2 percent in March. This smaller decline was largely driven by the electronics industry, which accounts for nearly half of the sector, with output there down 1.1 percent on the year after falling 11.3 percent previously. In the biomedical industry, where conditions are often volatile, output fell 29.1 percent after a previous decline of 34.8 percent. Output growth was mixed in other parts of the sector. Excluding the biomedical industry, output rose 1.7 percent on the year in April after falling 5.7 percent in March.

Singapore's volatile industrial production is expected to post a modest 0.2 percent increase on the year in April, failing to recover from a deeper-than-expected 9.2 percent dive in March, which followed an upwardly revised 4.4 percent rise in February. On the month, output is seen up 5.7 percent after plunging 16.0 percent in March and surging 14.6 percent in February.

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.