ANN/THE STRAITS TIMES – Singapore’s manufacturing sector returned to growth in July with a performance that topped market expectations, according to data out yesterday.
Factory output expanded by 1.8 per cent in July year on year, with all but the biomedical industry recording growth, said the Economic Development Board (EDB).
It reversed the downwardly revised 4.3 per cent contraction in June, and beat the 0.2 per cent rise forecast by analysts in a Bloomberg poll.
Excluding biomedical manufacturing, output increased 3.4 per cent.
On a seasonally adjusted month-on-month basis, manufacturing output expanded 10.1 per cent. Excluding biomedical manufacturing, it grew 4.1 per cent.
July’s positive turn is in line with the government’s view that Singapore’s manufacturing sector will see a gradual recovery in the second half of 2024. In particular, the key electronics cluster was projected to recover more strongly, supported by robust demand for smartphone, personal computer (PC) and artificial intelligence (AI)-related chips, the Ministry of Trade and Industry (MTI) said in July.
EDB’s latest data showed electronics output expand 2.8 per cent year on year in July, after contracting 6.7 per cent in June.
Within the industry, the computer peripherals and data storage segment jumped 34.9 per cent, while other electronics modules and components grew 6.1 per cent. The semiconductors segment increased by 1.9 per cent. However, the infocomms and consumer electronics segment contracted 6.6 per cent.Transport engineering output also performed well, with output growing 13.3 per cent in July. The aerospace segment rose 21.7 per cent, with higher demand for aircraft parts and more maintenance, repair and overhaul jobs from commercial airlines. The land segment saw a 16.5 per cent growth. However, the marine and offshore engineering segment declined 1.2 per cent on the back of lower project milestones met.
