Why Singapore's December PMI is poised for a 'modest recovery'

These segments could pick up the slack.

According to DBS, after the poor outcome in November export and industrial production figures, hope is now pinned on a pickup in December industrial activity.

The PMIs due this evening will provide some guidance. Market is hoping for modest improvement in both the overall manufacturing and electronics PMIs. We tend to concur with market on this.

Here's more from DBS:

The earlier slump in November is merely due to the lapsing of the Christmas season effect. As the festive season orders were delivered, naturally production will ease and sales will moderate. But in December, companies will again have to raise the ante in their production to deliver their overseas orders before the upcoming Lunar New Year lull period.

Specifically, plants in China will shut down for business as the Lunar New Year approaches. Local manufacturers who supply high end components to these Chinese plants will have to step up their production prior to that. And this explains the pre-festive season increase in production.