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Thu, 26 Jul 2018 – 1:00 PM
UPDATE Thu, 26 July 2018 – 3:33 PM
Production at SINGAPORE factories increased in June, exceeding expectations and challenging Ongoing discussions of a trade war According to data from the Economic Development Board released on Thursday, industrial production grew 7.4% over the previous year, while manufacturing growth slowed compared to the 12.9% recorded in May. Economists' consensus economic forecasts were more optimistic about an increase of 3.3%.
Excluding the volatile seasonal biomedical manufacturing cluster, production increased 5.9% in June.
Biomedical manufacturing, increasing by 13.8%.
But the chandelier may fade in the group of the power station. Production rose 7.1% – a decline from the 18.7% jump the previous month – with growth in semiconductors, other electronic modules and components, and electronics and electronics products. 39, consumer electronics. However, the 10.2% growth of the semiconductor segment declined sharply compared to the 29% expansion recorded the previous month.
Benjamin Shatil, economist at JP Morgan, commented that "the demotion largely reflects a leveling of semiconductors" Some production categories increased during the month – transportation and precision engineering – but the strength here largely reflects idiosyncratic factors, the former being probably a product of stabilizing oil prices and the second supported by an increase in the growth of the transport engineering branch has increased by 12.4 percent – fueled by a 28.3 percent increase in the marine and offshore engineering sector on offshore project recovery – 4.8 percent growth in the aerospace sector was less significant, thanks to the strong repair and maintenance activity of commercial airline engines – despite the 28.1% decline in land transport production.
Precision modules and components grew 15.4%, thanks in part to higher optical instrument output to meet export demand. Even though the machinery and systems sector fell 3.7%, production of refrigeration systems, semiconductor-related equipment and mechanical work declined
Production of chemicals increased 1.6%, driven by growth of 14.3%. petrochemicals and 5.1 percent oil growth, offsetting slippage in the specialty and other chemical sectors.
General manufacturing output edged up 0.5 percent, fueled by dairy products and infant formula. However, the sluggishness of analysts may well begin to be felt, as the growth of electronics has slowed compared to the previous year even as storm clouds were piling up. . In World Trade Prospects,
"The rapid estimate of gross domestic product in the second quarter had already shown that the manufacturing sector was weak." He added that JP Morgan's forecast provides for "some recovery. "in the third quarter – assuming that demand for smartphones stabilizes and capital spending in developed markets stabilizes – and the survey of the Purchasing Managers Index Manufacturing Index should help determine if demand stabilizes after a weaker second quarter.
The Asia-Pacific ING team said in a note of analysts that growth in industrial production is very weak. "But there are too many unanswered questions to predict with confidence what will happen during the rest of the year and next year," added ING economists. There is also p What things can domestic policy do to reverse the trend? "
A harbinger of non-oil domestic exports came in June, which disappointed observers with a moderate growth of 1.1 percent year-over-year. .
DBS analysts had previously written, ahead of the latest factory figures: "The latest performance of non-oil domestic exports is a clear indication of a poor performance of industrial production … While this is partly attributed to the decline in non-electronic exports, the underlying trend is heading down, and we expect that the recovery of external headwinds will also be reflected in industrial performance. "
On a Seasonally adjusted, overall manufacturing output rose 3.9% mom, but actually dropped 0.6% when the performance of the biomedical manufacturing cluster was omitted.
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