Singapore: Economy contracts in the third quarter
October 12, 2012
In the third quarter, GDP contracted at a seasonally-adjusted annualized rate (saar) of 1.5% over the previous quarter, according to an advance estimate released by the Ministry of Trade and Industry (MTI) on 12 October. The negative reading contrasted the 0.2% expansion seen in the second quarter and came in below market expectations of a 1.6% decrease. Compared to the same month last year, GDP grew 1.3% (Q2: +2.3% year-on-year). The deterioration mainly reflected worse performance in goods-producing industries. In particular, construction output swung from a 14.3% annualized expansion in the second quarter to a 7.5% contraction in the third. In addition, manufacturing output declined 3.9% (Q2: -0.1% quarter-on-quarter saar). On the other hand, services improved and added 0.1% in Q3, contrasting the 0.4% decline in the second quarter.