Singapore’s manufacturing output declined by 8.0 percent year-on-year in August 2019, compared to market expectations of a 0.7 percent drop and following a revised 0.1 percent contraction in the previous month. This was the fourth straight month of yearly decrease in factory output, due to a slump in electronics output (-24.4 percent vs flat reading in July) and precision engineering production (-13.6 percent vs -7.8 percent) and a slowdown in general manufacturing industries growth (5.8 percent vs 6.8 percent). On the other hand, output grew faster for both biomedical manufacturing (10.6 percent vs 1.1 percent) and chemicals (2.7 percent vs 2.5 percent), while rebounded for transport engineering (0.5 percent vs -1.4 percent). On a monthly basis, manufacturing production fell unexpectedly by 7.5 percent in August, missing consensus of a 0.1 percent rise. Industrial Production in Singapore averaged 6.87 percent from 1984 until 2019, reaching an all time high of 58.60 percent in May of 2010 and a record low of -32.20 percent in March of 2009.
Industrial Production in Singapore is expected to be -2.60 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Industrial Production in Singapore to stand at 3.00 in 12 months time. In the long-term, the Singapore Manufacturing Production is projected to trend around 6.00 percent in 2020, according to our econometric models.