October IPI Slowed On Broad-Based Weakness

Economic Research	28 November 2016
Singapore
Economic Highlights
October IPI Slowed On Broad-Based Weakness Singapore’s industrial production index (IPI) gained 1.2% y-o-y in October, slowing sharply from a 7.7% surge the month before. The sharp moderation in growth was driven by broad-based weaknesses. However, semiconductor output growth continued to gain momentum, cushioning some of the downside. Going forward, we see some headwinds ahead, especially in the electronics cluster. However, a return to full production for the pharmaceutical factories should help offset some of the losses. We maintain our projection for the IPI to gain 1.0% in 2016, from -5.1% in 2015. Economist:  Ng Kee Chou | +603 92802179