Singapore industrial production stabilised in June, with output flat on the month after falling 0.4 percent in May. Previously published PMI survey data showed a moderation in conditions in June, with July PMI data scheduled for release early-August. The Monetary Authority of Singapore will hold its quarterly policy review next week.

In year-over-year terms, industrial production rose 8.0 percent in June after increasing 3.9 percent in May. Output growth in the electronics industry, which accounts for nearly half of the sector, picked up from 3.4 percent to 6.6 percent. Output rose 11.3 percent on the year in the volatile biomedical industry after a previous increase of 4.6 percent. Excluding the biomedical industry, output rose 8.2 percent on the year in June after increasing 4.8 percent in May.

Industrial production in Singapore is forecast to have slumped 1.5% on the month in June for a sixth decline in the past 12 months after dipping 0.4% in May and surging 4.9% in April.

From a year earlier, factory output is expected to have risen 6.6% in June after growing 3.9% in May and 5.6% in April.

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.