Economist at UOB Group Barnabas Gan reviews the latest Industrial Production figures in Singapore.
“Singapore’s industrial production disappointed market estimates with a contraction of 0.9% y/y (-19.0% m/m sa) in October 2020... Excluding biomedical manufacturing, industrial production fell by a slightly more severe 2.7% y/y.”
“Notwithstanding the surprise fall in manufacturing momentum, it is too early to tell if the initial growth spurt seen in 3Q20 has dissipated… Furthermore, the bulk of the decline is still led by COVID-19-related factors which include the travel restrictions, lacklustre demand for construction-associated products, and low oil prices.”
“Being a trade-reliant economy, Singapore’s decline in manufacturing momentum would also be correlated to the unexpected contraction in Singapore’s non-oil domestic exports (NODX) in October 2020.”
“Accounting for the latest manufacturing data, year-to-date manufacturing growth is now at +5.5% y/y, up from -0.1% y/y in the same period last year. Despite the surprise decline in October’s manufacturing momentum, we keep our full-year industrial production growth outlook to average +5.5% in 2020.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.