July IPI Slumped On Broad-based Weakness

Economic Research	29 August 2016
Singapore
Economic Highlights
July IPI Slumped On Broad-based Weakness Singapore’s industrial production index (IPI) slumped 3.6% y-o-y in July, from +0.6% the month before, turning negative for the first time in five months. The sharp negative swing was driven by a slowdown in electronic manufacturing and compounded by accelerated declines in the transport engineering and general manufacturing clusters. On top of that, precision engineering activities, often an indicator of CAPEX activities, slipped back into contraction after rising 7.0% y-o-y the month before, highlighting considerable challenges to future growth. Meanwhile, slower declines in the pharmaceutical and chemicals segments helped cushion some of the fall. Excluding biomedical manufacturing, output shrank 2.0% y-o-y in July, retreating from a 3.7% bounce the month before. Economist:  Ng Kee Chou | +603 92802179
To access our recent reports please click on the links below: 24 August  2016: Inflation Stays Negative In July 18 August  2016: July NODX Slump Deepened On Broad-based Weaknesses 12 August  2016: Singapore’s 2Q GDP Revised Lower As MTI Cuts 2016 Forecast 01 August  2016: Sharp Dive In Business Loans Point To Economic Weakness Ahead 28 July  2016: Will Singapore Ease Policy To Cushion Brexit’s Impact? 27 July  2016: June IPI Slipped On Weak Pharma And Oil Exploration Activities