Singapore Aug Manufacturing Output dives 12% y/y, More than Expected

Oct 2023

In August, Singapore’s industrial output declined by 12.1% year-on-year, marking the 11th consecutive month of contraction, surpassing expectations and driven primarily by a sharp decline in the electronics sector. Economists had anticipated a 3.1% year-on-year decrease, but the actual figure was far more substantial. On a month-on-month basis, industrial production in August fell by 10.5%, missing economists’ expectations of a 1.7% contraction. The electronics industry, a vital component of Singapore’s industrial output, experienced a 20% year-on-year drop in August, reflecting weakening global demand.

Economist Selena Ling from OCBC noted that the extent of the contraction, returning to negative double-digit figures, raises concerns for manufacturing growth. Ling suggested that if this trend persists, Singapore’s 2023 economic growth might fall toward the lower end of the official forecast. The nation had slightly revised down its economic projection for 2023 to a range of 0.5% to 1.5% after narrowly avoiding a recession in the second quarter.

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