Total factory output rises at slower pace in September

Singapore's total manufacturing output rose for a third straight month in September, though the key electronics industry saw a slower pace of growth.

- Sue-Ann Tan

Economists told The Straits Times that Singapore's manufacturing recovery may stay on track despite the economic and geopolitical risks to global trade.

With the smaller rise in electronics production, total output grew 9.8 per cent from a year ago, down from the revised 22 per cent jump in August, data from the Economic Development Board (EDB) on Oct 25 showed.

Excluding the volatile biomedical manufacturing, factory output rose 4.5 per cent.

On a seasonally adjusted month-on-month basis, output was largely unchanged from August. Excluding biomedical manufacturing, it dropped 7.6 per cent.

UOB associate economist Jester Koh called September's growth "remarkably resilient" and said it might mean an upward revision to Singapore's gross domestic product for the third quarter of the year.

Meanwhile, Maybank analysts Chua Hak Bin and Brian Lee said the electronics recovery might remain intact despite the slower output growth in September.

"That said, there are risks to Singapore's export and manufacturing recovery on the horizon. These include more tariff barriers and a bigger US-China trade war (which could ensue from a Trump election win in November), an escalation of geopolitical conflicts in the Middle East, and a United States economic slowdown," they said.