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Singapore factory output growth cools to 2.2% in June amid electronics slowdown, chemicals decline
SINGAPORE’S factory production growth slowed to 2.2 per cent in June, down from 10.4 per cent in May, as the sector was dragged down by softer electronics output and declines in pharmaceuticals and chemicals.
Excluding the volatile biomedical manufacturing cluster, industrial production rose by 4.2 per cent year on year in June, according to preliminary data on Tuesday (Jul 26).
The linchpin electronics cluster cooled to growth of just 2.3 per cent year on year, against 22.9 per cent in May.
Output in Singapore’s key semiconductors segment shrank by 2.6 per cent, reversing the previous month’s expansion of 32.1 per cent. Meanwhile, the other electronic modules and components segment declined by 23.5 per cent, as the Economic Development Board (EDB) noted “lower export orders from China”.
Firm growth was still registered in other clusters:
- Transport engineering (32.0 per cent)
- General manufacturing (10.1 per cent)
- Precision engineering (5.6 per cent)
But output fell year on year elsewhere:
- Biomedical manufacturing (-9.2 per cent)
- Chemicals (-11.0 per cent)
The chemicals cluster’s petrochemicals segment posted lower production on plant maintenance shutdowns, while the other chemicals segment saw lower output of fragrances, EDB said.
On a seasonally adjusted, monthly basis, manufacturing output fell 8.5 per cent in June, or by 6.9 per cent when biomedical manufacturing was stripped out.
For the half-year to June 2022, Singapore’s manufacturing sector grew by 5.6 per cent year on year, or 7.5 per cent excluding biomedical manufacturing. The EDB noted that figures for the first 5 months “have been revised due to updated information about a firm-specific factor” in the semiconductor segment.
Source: https://www.businesstimes.com.sg/government-economy/singapore-factory-output-growth-cools-to-22-in-june-amid-electronics-slowdown