Singapore industrial production remained weak in October, with output increasing just 0.1 percent on the month after falling 1.5 percent in September. Previously published trade data also showed a contraction in exports in October, whereas PMI survey data showed slower but still solid growth in the aggregate economy.

In year-over-year terms, industrial production rose 1.2 percent in October after increasing 9.0 percent in September. This moderation in year-over-year growth was not driven by the electronics industry, which accounts for nearly half of the sector, with output there increasing 4.3 percent on the year after advancing 0.9 percent previously. Output growth also picked up in the transport engineering industry. Output growth, however, weakened in the volatile biomedical industry and in the chemicals, precision engineering and general manufacturing industries. Excluding the biomedical industry, output advanced 0.4 percent on the year in October after increasing 3.6 percent in September.

Singapore's industrial production is expected to rise 2.0% on the year, slowing from a 9.8% gain in September and a 22.0% surge in August. On the month, manufacturing output is forecast to post a modest 0.6% rise on the month in October after being flat in September and growing in the previous two months (6.9% in August and 10.6% in July).

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.