FW: RHB | Singapore | IPI Ekes Out Improvement Despite Pharma Slump

 

 

 

 

Economic Research			27 November 2017
Singapore
Economic Update
IPI Ekes Out Improvement Despite Pharma Slump   Singapore’s IPI rose 14.6% YoY in October, edging higher from its +14.4% reading the month before. The pick-up in growth was driven by strengthening semiconductor and chemicals output, as well as a sharp surge in food production. Meanwhile, pharmaceuticals output tumbled, capping some of the upside. Excluding biomedical manufacturing, Singapore’s IPI jumped 25.8% YoY, blowing past its 15.9% increase in September. Going forward, we maintain our view for IPI to remain positive but slow in the coming months and into 2018. Our forecast is for manufacturing activity to grow 11.8% this year, before slowing to 7.6% in 2018, undermined by a high base effect and a cyclical slowdown in semiconductor demand. However, in our view, growth next year would be supported by semiconductor testing activities, and higher demand for capital goods, as well as a recovery in the marine & offshore segment, which would help cushion some of the downside.   Economist:  Ng Kee Chou | +603 92802179
To access our recent reports please click on the links below: 24 November 2017: CPI Steady In October; Set To Rise In Last Two Months 24 November 2017: Private Spending Rebounds As GDP Hits Four Year High 20 November 2017: October NODX Surged But Electronics Slowing Down 01 November 2017: Loan Growth And M3 Diverge 27  October 2017: IPI Remains On An Easing Trend  16 October 2017: MAS Stoic Despite Sharp 3Q GDP Rise
Economics Team
Peck Boon Soon	Chief ASEAN Economist	bspeck@rhbgroup.com		+603 9280 2163
Vincent Loo Yeong Hong	Malaysia, Vietnam	vincent.loo@rhgroup.com		+603 9280 2172
Ng Kee Chou	Singapore, Thailand	ng.kee.chou@rhbgroup.com		+603 9280 2179
Rizki Fajar	Indonesia, Philippines	rizki.fajar@rhbgroup.com		+6221 2970 7065
Aris Nazman Maslan	Malaysia, Vietnam	mohd.aris.nazman@rhbgroup.com		+603 9280 2184

 

 

 

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