Singapore: Manufacturing accelerates in January
February 25, 2011
In January, industrial production expanded 10.5% over the same month last year. The reading beat the 6.9% increase expected by market analysts and even exceeded the 9.0% growth recorded in December. The better-than-expected reading was driven by a 20.2% expansion in electronics, which accounts for nearly a third of the total industry. The only contraction over January 2010 was seen in the typically volatile pharmaceutical sector, as manufacturers closed plants for cleaning before switching their production to different drugs. A month-on-month comparison corroborates the strong growth suggested by the annual figures, as manufacturing output rebounded from a 12.1% contraction in December to expand 15.4% in January. However, the trend is pointing downwards, as the weak base effect from 2009 fades, with annual average growth moderating from the 30.4% peak in November 2010 to 27.1% in January (December: +29.7%).