Singapore’s industrial production in February declined 4.7% y/y, in spite of having a very low base in February 2015, when the output had dropped to a 24-month low. The data is worrisome as the February 2016’s figure is even lower. Indeed, the poor performance might be because of the Chinese New Year effect. But the nation’s manufacturing continues to be weak.
Excluding the Chinese New Year effect, the seasonally adjusted monthly data indicates that the prospect of manufacturing sector continues to be weak. On a month-on-month basis, the manufacturing sector shrank 4.8% in February, including the effects of Chinese New Year.
This indicates that manufacturing sector will keep struggling and the external demand continues to be weak, according to DBS Bank. The bank added that a recovery in the manufacturing sector in the near term is unlikely as all the leading indicators are pointing downwards.
