Excluding the more volatile biomedical industry, output increased by 1.4% in February. — The Straits Times
SINGAPORE: Singapore’s factory output extended its expansion in February, growing 3.8% year-on-year and beating analysts’ expectations.
This topped the 0.5% growth forecast made by economists in a Bloomberg poll.
Excluding the more volatile biomedical industry, output increased by 1.4% in February.
However, January’s growth was revised lower to 0.6% from an earlier estimate of 1.1%, figures from the Economic Development Board (EDB) showed.
Bright spots in February included a slim 2.6% increase in output by the key electronics industry, after it shrank 4.7% in January.
Within the industry, the infocomms and consumer electronics segment grew 30.9%, while semiconductors added 2.1% and other electronics modules and components increased by 0.3%. However, the computer peripherals and data storage segment contracted 10.7%.
The biomedical industry also returned to growth in February, with output expanding 27.4% after shrinking 25.9% in January.
The pharmaceutical segment grew 73.2%, with the production of more biological products and a different mix of active pharmaceutical ingredients.
Conversely, the medical technology segment declined 3.9% on the back of lower exports of medical devices, EDB said.
The chemicals sector was another bright spot in February, with output rising 11.2%.
The petrochemicals segment grew 22.3% on the back of a low production base in 2023, partly due to plant maintenance shutdowns, EDB noted.
The specialities segment and petroleum segments also grew, with the former recording higher output of mineral oil additives. In contrast, the other chemicals segment declined 8.2% due to lower output in fragrances.
Output also increased in transport engineering, with the sector recording a rise of 19.6%. The aerospace segment expanded 37.3% from a low production base a year ago due in part to component shortages, EDB said.
However, the marine and offshore engineering segment declined 3.5%, with a lower level of activity in the shipyards due to the Chinese New Year holiday.
Two industries, however, saw production decline.
Precision engineering output slumped as output fell 19.9%. The precision modules and components segment contracted 15.1%. The machinery and systems segment shrank 20.4%, mainly due to lower production of semiconductor-related equipment.
General manufacturing’s output dropped 3.4%. — The Straits Times/ANN
