Sluggish manufacturing figure for December poised to drag 2010 GDP down

Industrial production’s “disappointing” +9.0% yoy (-11.8% mom sa) reflects the ongoing volatility in the pharmaceuticals industry, according to OCBC.

The drug manufacturing sector slowed from +189% yoy in Nov to +3.3% yoy in December due to a
different mix of active pharmaceutical ingredients being produced.

OCBC said the industrial sector “disappointed” with their output.

Despite the 10.8% yoy (-+3.0% mom sa) growth posted by other manufacturing sectors, OCBC said theat the 2010 flash GDP growth estimates are still likely to be revised down from +12.5% yoy to 11.8% yoy, bringing the full-year growth to 14.5% yoy instead of 14.7% yoy.

For 2011, the bank expects manufacturing growth to moderate from 30% yoy to single-digit growth of 5.6% yoy.

GDP growth will also similarly ease from double-digit expansion to 4.5% yoy, OCBC said.