Singapore December Industrial Production (I.P) dropped 7.9 percent y/y, in line with the consensus of -7.2 percent, while November's IP was revised down to -6.4% from -5.5%. Seasonally adjustment M/M gained 2 percent, reversing November's contraction of 3.8 percent.
Weak performance in the electronics and transport sectors resulted in the decline of December's Industrial Production YoY print. Slow production in electronics sector was expected, as the growth in external demand around festive season was more subdued than usual.
"All said, today's release suggests the persistent manufacturing drag is likely to weigh on the upcoming final Q4 GDP release. We maintain our forecast and expect a downward revision in Q4 GDP from 5.7% q/q saar to 3.4%, and expect the full-year GDP to grow 2.0% y/y" - Barclays
