Singapore industrial production surprises on the downside; electronic sector offsets the fall

Industrial production in Singapore surprised markets on the downside for the month of July, following broad-based contraction across all sub-sectors. However, the electronics segment remained upbeat to offset the decline in all other sectors.

Reversing four consecutive months of year-on-year expansion, Singapore's industrial production in July was down 3.6 percent, falling more than what markets had earlier expected, compared with the same period a year ago, data released by the Economic Development Board (EDB) showed Friday.

Measured on-month and on a seasonally adjusted basis, manufacturing output fell 4.0 percent in July over June, compared with a revised 1.5 percent fall in the previous month. Market participants had predicted industrial production to fall 1.5 percent from the previous month in July.

Electronics output, which accounts for 27.4 percent of the total value of goods produced in Singapore, increased 16.2 percent on- year in July, following a 19 percent gain in June, the data showed. Moreover, production in the highly unpredictable pharmaceuticals segment, however, fell 14.1 percent on-year in July, after a 15.4 percent on- year fall in June.

However, the electronics sector posted an expansion, with production rising 16.2 percent in July, owing to 34 percent jump in the output of semi-conductors. Meanwhile, The aerospace and land transport segments declined 2.3 percent and 2.6 percent respectively.