Biomedical reversal triggers weakness in Singapore November industrial production

Singapore November IP dropped 5.5% yoy which was much lower than expected fall of 3% by the market consensus. The output declined 3.6% mom on a seasonally adjusted basis, which reversed the profits earned in September and October.

This fall came widely because of weaker than expected performances in the biomedical and the transport sectors. Excluding biomedicals, the industrial production in November.

The electronics segment performance remains weak, with the output dropping by 11.1% in Novemebr, which was largely priced in, as the electronics PMI continues to languish below 50.

"Moreover, the usual festive season-led uplift in external demand has been more muted than normal this year, given high level of inventories in the supply chain. The silver lining is that despite the negative surprise, underlying IP momentum ex pharma has been improving, with 3m/3m saar momentum turning positive in November", says Barclays in a research note.