Singapore's manufacturing output growth unexpectedly accelerated in June led by a surge in the pharmaceutical production, data from the Economic Development Board showed Thursday.
Manufacturing output climbed 7.6 percent from a year ago, faster than the revised 6.8 percent increase in May. The growth rate was forecast to slow to 2.8 percent in June. Production increased for the second straight month in June after easing for two consecutive months.
On a seasonally adjusted month-on-month basis, manufacturing output unexpectedly rose 3.9 percent in June, after expanding by a revised 2.8 percent in May. Economists had expected a 0.8 percent fall for June.
Citing the latest data, ING Economist Tim Condon said the 0.6 percent decline in factory output as estimated in the preliminary estimates of second quarter GDP is likely to be revised upward. Consequently, the second quarter GDP figures are also likely to be upgraded, he added.
Driven by a sharp contraction in manufacturing, gross domestic product was down 1.1 percent sequentially in the second quarter. Annually, GDP grew 1.9 percent.
Excluding biomedical manufacturing, output declined 3.8 percent month-on-month in June, dragging the annual figure lower by 1.5 percent.
Output of the biomedical manufacturing cluster surged 54.4 percent, following May's 33.4 percent growth. Transport engineering output climbed 7.6 percent on ship building.
Production in the general manufacturing cluster rose only 0.6 percent, while output in the precision engineering cluster reported a decline of 3.4 percent.
The decline in the electronics cluster moderated in June, with output falling 4.5 percent and the chemical cluster output dropped 5.7 percent, with all segments logging lower output.
The Monetary Authority of Singapore has forecast 1 percent to 3 percent growth this year for the city-state economy.
MAS Managing Director Ravi Menon on Wednesday warned that economic growth could fall below 1 percent this year if downside risks from external environment worsen.
by RTT Staff Writer
For comments and feedback: email@example.com