Singapore industrial production rebounded sharply in April, with output increasing 5.3 percent on the month after dropping 2.7 percent in March. Previously published PMI survey showed solid growth in April, with May data scheduled for release next week. Officials at the Monetary Authority of Singapore at their most recent meeting in early April announced they would target a slightly reduced rate of exchange rate appreciation.

In year-over-year terms, industrial production rose 5.9 percent in April after increasing 6.8 percent in March. Output fell 1.1 percent on the year in the volatile biomedical industry after a previous increase of 17.3 percent, with output also falling in the chemicals and general manufacturing industries. In contrast, growth accelerated in the electronics industry, with output there increasing 15.2 percent on the year after advancing 11.2 percent previously. Output growth also improved in year-on-year terms in the transport engineering and precision engineering industries. Excluding the biomedical industry, output advanced 8.1 percent on the year in April after increasing 6.0 percent in March.

The consensus looks for output up 6.3 percent on the month and up 2.5 percent 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.