Singapore: Manufacturing contracts in January following December's surge
February 24, 2012
In January, manufacturing production contracted 8.8% over the same last year, which contrasted the buoyant 25.2% expansion observed in December. The fall exceeded market expectations, as analysts expected a modest 0.7% decline. The significant contraction was underpinned by the electronics cluster, which declined 28.4%. In contrast, the biomedical manufacturing cluster grew 27.9% on the back of a vigorous expansion in the highly volatile pharmaceutical sector. Compared to the previous month, manufacturing output grew 3.3%, which was nearly a third of the 8.8% increase recorded in December. Moreover, owing to the subdued print, annual average growth moderated from 7.8% in December to 5.0% in January. The government expects the economy to grow between 1.0% and 3.0% this year.