Singapore’s industrial output data for the month of December is set to release tomorrow. According to a DBS Bank research report, the industrial output is expected to have remained in negative territory; however, the pace of fall is likely to have eased to -3.4 percent year-on-year. The most recent non-oil domestic export figure has given a bright spark on the manufacturing outlook.
NODX in December rose 2.4 percent year-on-year and this marks the first month of growth after nine straight months of fall. This affirms the long-held belief that the trough in export and the manufacturing sector was reached around mid-2019, said DBS Bank.
Since then, the global business cycle has begun to rebound. Nevertheless, risks on the external front remains and the manufacturing outlook is far from hunky-dory.
“No doubt the phase one deal signifies a positive step in the de-escalation process, it doesn’t mark the end of the trade war, as high tariff rates remained in place. In this regard, we expect the recovery ahead to be tepid”, added DBS Bank.
