Singapore industrial production remained weak in November, with output decreasing 0.4 percent on the month after rising just 0.1 percent in October and falling 1.5 percent in September. Previously published trade data, in contrast, showed an increase in exports in November, while PMI survey data showed moderating but still solid growth in the aggregate economy.

In year-over-year terms, industrial production rose 8.5 percent in November after increasing 1.2 percent in October. The jump in year-over-year growth was driven by the electronics industry, which accounts for nearly half of the sector, with output there increasing 26.2 percent on the year after advancing 4.2 percent previously. Output growth also improved in year-on-year terms in the precision engineering industry, but contracted in the volatile biomedical industry and in the chemicals, transport engineering, and general manufacturing industries. Excluding the biomedical industry, output advanced 13.0 percent on the year in November after increasing 0.4 percent in October.

Industrial output is expected to show 9.8 percent growth on year in November after a softer 1.2 percent increase in October from a year ago. Similarly, the consensus looks for a much stronger 0.9 percent increase on the month compared with 0.1 percent in October.

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.