Singapore: Outlook for Industrial Production remains solid

Economist at UOB Group Barnabas Gan assesses the latest results from the Industrial Production in Singapore.

Key Takeaways

“Industrial production expanded 6.2% y/y (+2.2% m/m sa) in Apr 2022, beating market expectations for a softer growth of 4.3% y/y (although the sequential increase is weaker than the projected +5.0% m/m sa). Excluding biomedical manufacturing, industrial production rose 7.7% y/y.”

“The global trade recovery and Asia’s gradual reopening of borders aided overall manufacturing momentum. This is led especially by the transport engineering cluster which expanded 17.2% y/y in Apr 2022, on the back of higher production of aircraft parts, maintenance & repair demand from commercial airlines. Strong demand from the semiconductor segment also underpinned the electronics and precision engineering industries.”

“On the back of Apr’s manufacturing print and Mar’s upward revision (Mar 2022: +5.1% y/y), Singapore’s industrial production rose 7.3% in the first four months of 2022. Despite the uptick year-to-date, it remains softer compared to the 9.2% growth print seen in the same period last year. Moreover, relatively higher base levels will dampen the IP growth numbers for the rest of this year, considering that industrial production expanded by double digit growth rates between May – Dec 2021 (except for Sep 2021).”

“In all, our outlook is for full-year manufacturing to grow by an average of 4.0% in 2022. This suggests that despite the high-base growth rate seen in 2021, global trade activity is expected to stay buoyant in the year ahead.”

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.