World Economy

Singapore Factory Output Falls

Singapore Factory Output FallsSingapore Factory Output Falls

Singapore’s manufacturing output slumped 3.6% in July from a year ago, contracting for the first time in five months, underlining concerns surrounding the country’s economic outlook, Channel NewsAsia reported. July’s reading also marked the biggest slump since Dec 2015, when factory output shrunk 11.9% on a year-on-year basis, according to figures released by the Economic Development Board on Friday.  Economists polled by Reuters had expected a rise of 0.9% on-year. On a month-on-month and seasonally adjusted basis, factory output plunged 4% in July, significantly higher than a forecast of minus 1.1%. The weaker-than-expected number “reinforced our negative view on the Singapore economy”, said Credit Suisse economist Michael Wan.  He added that Friday’s economic data implied a weak gross domestic product figure for the third quarter at around 1% year-on-year, a moderation from economic growth of 2.1% in the second quarter. Data from last week also revealed a deepening export slump, with non-oil domestic exports plunging 10.6% on-year last month, widening from a 2.4% drop in June.