Slow industrial production to drag down manufacturing full-year growth: analyst

Industrial production slowed down to 2.7% in August 2022.

As there is a sluggish growth in industrial production, RHB said it expects that manufacturing growth in 2022 will decline to 4.0%.

Whilst Singapore posted strong tourism revival and retail sales, the analyst said the industry will be much more “lacklustre.”

RHB said the industrial production continues to move at a slow pace as it shrunk 2.7% in August, which it said it was the lowest since December 2020.

“Even as sequential growth was at a seasonally-adjusted pace of 2.0% in August, risks surrounding the slowdown in semiconductor demand had dragged precision engineering output,” said RHB in its brokerage report.

Chemicals output also declined, which stemmed from plant maintenance closures.