Singapore industrial production surges in July, growth to stay in double digit in months ahead – DBS Bank

The Singaporean manufacturing sector outperformed again in July. The industrial production growth rose sharply by 21 percent year-on-year in the month, mainly driven by a 49.1 percent growth in electronics cluster. However, the biomedical cluster was a slight drag.

Excluding biomedical, overall industrial production grew 24.9 percent in the month. Compared to the same period last year, output rose by another quarter, noted DBS in a research report. Even the transport engineering cluster, which has been stuck in the doldrums for the last three years because of the decline in oil prices, has reported a second straight month of growth. Indeed, last month’s growth in the transport engineering cluster was not a fluke. The worst is probably behind for this industry.

On a sequential basis, the picture is upbeat. While the overall output grew just 1 percent sequentially, the rate of growth is even stronger at 4.9 percent, if the biomedical cluster is excluded. The manufacturing sector seems to be getting a second wind. According to DBS Bank, output is expected to stay in double digit growth in months ahead as manufacturers struggle to fulfil the huge year end orders.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest