Industrial output slumps for 8th straight month

SINGAPORE – Manufacturing output contracted for an eighth consecutive month in September, although the pace of decline was slower than in August, as growth from the volatile biomedical cluster helped cushioned the sector from a deeper decline.

Singapore’s industrial production (IP) last month fell 4.8 per cent compared to a year ago, extending from a revised 7.1 per cent decline in August, data from the Economic Development Board showed today (Oct 26).

“Manufacturing output continued to decline for the eighth straight month, but the pace of contraction has eased. Note that excluding biomedical production, which was the saving grace, manufacturing output contracted 10.2 per cent with continued contraction in electronics, transport engineering and precision engineering,” said ANZ economist Ng Weiwen.

Output last month fell in four out of six clusters — electronics, precision engineering, general manufacturing products and transport engineering. Only the chemicals and biomedical manufacturing clusters grew by 4.4 per cent and 26.3 per cent on-year respectively.

The key electronics cluster, which carries the largest weight in the IP index, contracted by 8.6 per cent, moderating from the revised 10.7 per cent in August. The fall was mainly due to lower output from semiconductors.