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Singapore November factory output below forecast, may temper Q4 GDP

by December 26, 2017 General

By Masayuki Kitano

(Reuters) – Singapore’s industrial production in November rose less than expected from a year earlier, underscoring expectations for a moderation in the city-state’s economic growth in the fourth quarter.

output rose 5.3 percent last month from a year earlier, weaker than the median forecast in a poll that flagged 9.0 percent growth.

The latest production data reinforces the likelihood that economic growth in the October-December quarter will slow after a stellar third quarter, said Francis Tan, an for

“On a year-on-year basis it will pull back from the strong that we saw in the third quarter,” Tan said.

Economists have been flagging the chances of a moderation in fourth-quarter economic growth, partly because of a comparison against a high base recorded late last year.

On a month-on-month and seasonally adjusted basis, output fell 2.3 percent in November, data from the showed. The median forecast was an increase of 0.7 percent.

Industrial production was underpinned by electronics output, which increased 27.6 percent from a year earlier, with production rising 36.4 percent.

Such gains, however, were lower than the expansions recorded in October, when surged nearly 45 percent and production jumped 64 percent.

Weakness in and marine offshore engineering output tempered the overall rise in industrial production in November, with output shrinking 31.1 percent and offshore engineering production sinking 31.9 percent.

The production data came just a week before the release of the government’s advance estimate of fourth-quarter gross domestic product, which is due on Jan. 2.

In the third quarter, Singapore’s grew 5.2 percent from a year earlier, its quickest year-on-year pace in nearly four years, thanks to a boom in that some analysts say will encourage tighter monetary policy in 2018.

Separate data on Tuesday showed Singapore’s headline consumer price index rose a slightly faster-than-expected 0.6 percent in November from a year earlier as private road transport costs edged higher.

The central bank’s core inflation gauge increased 1.5 percent from a year earlier, in line with expectations and matching October’s pace.

(Reporting by Masayuki Kitano; Editing by and Gopakumar Warrier)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)