Singapore’s industrial production edges higher in August, stays below market consensus

Industrial production in Singapore edged higher during the month of August, remaining well below what markets had initially anticipated, as a decline in marine and offshore engineering output, coupled with a fall in pharmaceuticals production offset the expansion in electronics output.

Singapore’s manufacturing output rose 0.1 percent from a year earlier in August, data released by the Singapore Economic Development Board showed Monday. The median forecast in a Reuters survey was for an expansion of 0.6 percent.

Further, on a month-on-month seasonally adjusted basis, factory output was flat in August, weaker than the median forecast of an increase of 1.8 percent. Excluding biomedical manufacturing which shrank 8.4 percent year on year, factory output grew 2.3 percent in August.

Electronics output, which accounts for 27.4 percent of the total value of goods produced in Singapore, increased 10.8 percent y/y in August, following a 16.5 percent gain in July, the data showed. Production in the pharmaceuticals segment fell 14.1 percent y/y in August, at the same pace as in July.

However, electronics, the biggest cluster in Singapore manufacturing, rose for the third straight month in terms of double-digit percentage growth. Its output in August rose 10.8 percent year on year, though the rate of growth eased from June's and July's 19.1 percent and 16.5percent respectively.

Meanwhile, USD/SGD rallied on the first day of the week, breaking past the key 1.3600 handle to inch to a high of 1.3621 until last check.