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.
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