Singapore: Poor prospects for the industrial sector – UOB
|Barnabas Gan, Economist at UOB Group, reviewed the recent results from the industrial sector in Singapore.
Key Quotes
“Singapore’s industrial production disappointed market expectations with an 8.4% y/y contraction (+1.6% m/m sa) in July 2020, marking the third straight month of negative growth.”
“The downside surprise came from the contraction in biomedical manufacturing, which fell 24.8% y/y in July 2020. Transport engineering also contracted 37.4% y/y, marking the fourth month of negative print as the industry grapple with low oil prices.”
“The fall in biomedical production may be transient, owing to the likelihood for continued demand for biomedical products for the rest of 2020. Separately, low oil prices expected for the rest of 2020 will likely depress the chemicals and transport engineering clusters.”
“We maintain our view that industrial production will contract by 2.0% in 2020. Risks arising from COVID-19 amid trade headwinds are formidable drags to Singapore’s overall manufacturing environment.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.