Singapore factory output shrinks 6.9% in June, falling for 4th straight month

• Jul 26, 2019

SINGAPORE’S industrial output fell 6.9 per cent in June, deepening from May’s 2 per cent fall and marking the fourth straight month of year-on-year decline, according to preliminary estimates from the Singapore Economic Development Board on Friday.

June’s figure was a smaller decline than economists’ expectations of an 8.5 per cent fall. Excluding the volatile biomedical manufacturing sector, however, output fell 9.9 per cent year on year.

Biomedical manufacturing also cushioned month-on-month numbers. On a seasonally adjusted monthly basis, overall manufacturing output rose 1.2 per cent in June compared to May. But excluding biomedical manufacturing, it fell 2.9 per cent.

The troubled electronics sector, once the driver of Singapore’s manufacturing growth, continued to be the worst performer with output plunging 18.8 per cent in June, for the fourth straight month of decline. All segments except for data storage saw lower production. In the first half of the year, electronics output was down 6.9 per cent compared to the year-ago period.

General manufacturing and biomedical manufacturing posted the strongest performance, with both clusters being the only ones with positive cumulative output growth for the first six months of the year.

General manufacturing output rose 10.8 per cent in June. This was led by 22.2 per cent growth in the food, beverages and tobacco segment, thanks to higher output of beverage products. Miscellaneous industries saw output rise 0.9 per cent, while printing output fell 14.8 per cent. On a year-to-date basis, general manufacturing output was up 4.3 per cent compared to the year-ago period.

Biomedical manufacturing output was up 5 per cent in June, with pharmaceuticals output rising 5.3 per cent and medical technology output up 4.2 per cent. For the first half of the year, biomedical manufacturing output was up 9.6 per cent compared to the year-ago period.

The precision engineering sector saw output grow year on year for the first time since October 2018, inching up 0.3 per cent in June. The machinery and systems segment grew 3.3 per cent with higher output in semiconductor foundry equipment and refrigeration systems. But on a year-to-date basis, precision engineering output was still down 8.3 per cent.

Chemicals output fell 3.3 per cent in June, dragged down by a 12.3 per cent fall in petrochemicals due to maintenance shutdowns in some plants. The remaining segments of other chemicals, petroleum, and specialties saw growth of 3 per cent, 2.4 per cent, and 0.4 per cent respectively. Chemicals output growth for the first six months of the year was almost flat at 0.1 per cent from the year-ago period.

Transport engineering output fell 14.2 per cent, pulled down by a 33.3 per cent contraction in marine and offshore engineering, on account of lower levels of offshore and shipbuilding and repairing activities. In contrast, land transport grew 15.3 per cent and aerospace, 7.3 per cent. For the first six months, the transport engineering cluster shrank 0.6 per cent compared to the year-ago period.

Source: https://www.businesstimes.com.sg/government-economy/singapore-factory-output-shrinks-69-in-june-falling-for-4th-straight-month