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Singapore factory output up 8.9% in February, better than expected
SINGAPORE – Singapore’s factory output continued its winning streak in February, beating lower forecasts from economists concerned about the Chinese New Year effect.
The Economic Development Board on Monday (March 26) reported that industrial production grew 8.9 per cent in February compared to a year ago, more than double the 4.2 per cent expected by economists in a Bloomberg poll. Excluding biomedical manufacturing, output grew 9.1 per cent.
February’s figure of 8.9 per cent still lags behind January’s stellar expansion of 16.9 per cent, revised down from earlier 17.9 per cent.
On a seasonally adjusted, month-on-month basis however, manufacturing output dipped 0.5 per cent from January. But with biomedical manufacturing stripped out, output managed to grow 1.3 per cent.
Electronics was once again the star performer, expanding 17.4 per cent last month compared to a year ago. This was mainly due to the booming semiconductors segment, which posted a robust growth of 26.7 per cent.
The volatile biomedical manufacturing cluster expanded 8.4 per cent, on the back of higher output from the pharmaceuticals segment due to higher production in biological products.
Chemicals output increased 8 per cent, led mainly by petrochemicals, which grew 17 per cent on the back of increased production capacity.
Transport engineering went up 5.4 per cent year on year, attributed mostly to the aerospace segment, which grew a whopping 57.2 per cent as a result of higher volume of repair and maintenance work from commercial airlines.
Precision engineering – which is closely linked to electronics – grew at a sedate pace of 3.4 per cent. While the machinery and systems segment grew 6.6 per cent, other segments such as precision modules and components segment declined due in part to the Chinese New Year holiday.
General manufacturing fared the worst, with output declining by 6.3 per cent year on year. This again was due to fewer production days in February as a result of Chinese New Year.
The festival took place in February this year and January 2017, which muddied up data. Economists say that a clearer picture can only be seen in the next few months.
Source: http://www.straitstimes.com/business/economy/singapore-factory-output-up-89-in-february-better-than-expected