Singapore's manufacturers hold optimistic about business conditions in the second half of 2007, some easing of sentiments compared to a quarter ago, a government survey said Tuesday.

A net weighted balance of 22 percent of manufacturers expected business conditions to improve, compared with the 26 percent recorded a quarter ago, said the survey by the Economic Development Board (EDB).

"Whilst manufacturers on the whole expect demand to hold, there is some easing of sentiments moving into the second half of 2007," said the EDB.

Business expectations in the electronics cluster, which is Singapore's main exports, remains generally positive. A net 34 percent of respondents expect business conditions to improve in the second half year, compared to the 38 percent registered a quarter ago.

The EDB said manufacturers in the chemicals, biomedical, precision engineering, transport engineering, as well as general manufacturing industries all expect business conditions to remain stable for the last six months of 2007.

A weighted 52 percent of manufacturing firms reported no limiting factors affecting their ability to obtain more export orders in the third quarter.

Out of the weighted 43 percent of manufacturers which cited affecting factors, a weighted 28 percent ranked price competition from overseas competitors to be the most important limiting factor. A weighted 9 percent also cited other factors, such as raw material and hiring constraints.

The Survey was conducted during June to July and out of a total of about 397 manufacturing establishments surveyed, 96 percent responded.

In another survey, the services sector anticipates an improved business climate for the second half year, with an overall positive net weighted balance of 28 percent, compared with the 22 percent recorded the previous quarter.