Singapore’s factory output rose by 8% year-on-year in June, surpassing market expectations and improving significantly from May’s revised 3.6% growth, according to data released by the Economic Development Board on Friday (Jul 25).
A Bloomberg survey of private-sector economists had forecast a 7.1% increase.
When excluding the often-volatile biomedical manufacturing segment, output climbed 8.2% year-on-year, up from May’s adjusted 4.8% rise.
However, on a seasonally adjusted monthly basis, overall output was flat. Excluding biomedical manufacturing, it declined by 0.8%, compared to a 2.4% gain the month before.
Most industry clusters posted year-on-year increases in production, with the sole exception being general manufacturing.
The electronics sector, a key pillar of Singapore’s industrial base, expanded 6.6% in June, building on May’s 3.4% gain. Within the cluster, infocomms and consumer electronics surged 22.4%, while semiconductors grew 4.3%. These gains offset declines in computer peripherals and data storage (-14.6%) and other electronic components (-14.8%).
The precision engineering sector led all clusters with an 18.9% annual rise. Machinery and systems output jumped 19.3%, driven by higher production of semiconductor and process control equipment.
Biomedical manufacturing increased 11.3%, bolstered by a 38.8% spike in pharmaceutical output from a low base last year. This counterbalanced a 2.5% drop in medical technology.
Transport engineering grew by 9.2%, supported by a 20.6% surge in the aerospace segment due to increased aircraft part production and more maintenance and repair work from commercial airlines. These gains offset declines in marine and offshore engineering (-2.6%) and land transport (-11.7%).
Chemical output rose 1.1% year-on-year. Petrochemicals rebounded 6.9% from a low base last year due to maintenance shutdowns. The other chemicals and petroleum segments rose by 5% and 1.8%, respectively, while the specialties segment dropped 6.5% on weaker production of industrial gases, biofuels, and food additives.
General manufacturing was the only cluster to see a decline, falling 11.6% year-on-year. All segments contracted except printing, which edged up 2.5%. The food, beverages, and tobacco segment declined 12.7% due to lower beverage and milk powder output. Miscellaneous industries shrank 11.6%, impacted by reduced production of structural metal components and packaging materials.
