Singapore: Clouds on the horizon – Standard Chartered
Singapore’s Q2 final GDP growth was revised higher to 3.9% y/y from the advance print of 3.8%, easing from the revised 4.5% y/y in Q1 (from 4.3% due to the upward revision from manufacturing), notes the research team at Standard Chartered.
Key Quotes
“Q2 manufacturing GDP growth was revised higher to 10.2% y/y from 8.6%, in line with our expectation, as June industrial production (IP) came in higher than implied by the advance print.”
“Q2 construction GDP fell 4.6%, relatively unchanged from the advance print of -4.4%; this was the slowest pace of decline in six quarters. Meanwhile, Q2 services GDP growth was revised significantly lower to 2.8% y/y from the advance print of 3.4%, the slowest pace of growth in four quarters.”
“Actual data has remained sanguine so far; however, sentiment is not. The ongoing US-China trade dispute poses the biggest downside risk to growth, in our view.”
“Weak financial market sentiment amid emerging-market weakness is also a risk worth monitoring. With risk biased to the downside, we see increasing risk of the central bank staying status quo in October (our current call is for a slight tightening).”
Author
Sandeep Kanihama
FXStreet Contributor
Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.
