Singapore: Manufacturing output declines sharply in May
June 24, 2011
In May, industrial production contracted 17.5% over the same month last year. The subdued print represented the second consecutive drop (April: -9.5% year-on-year) and surprised the market on the downside, as analysts expected a less pronounced 9.3% decline. The weaker-than-expected reading was mainly the result of lower output of the highly volatile biomedical manufacturing sector (May: -42.1% year-on-year) which, according to the Economic Development Board (EBD), was ?due to a different mix of active pharmaceutical ingredients being produced.? A month-on-month comparison corroborates the deterioration suggested by the annual figures, as manufacturing output dropped a seasonally adjusted 3.8% over April. Moreover, the trend continues to point downwards, with annual average growth plummeting from the 18.9% in April to 12.1% in May.