Electronics sector plunge leads to contraction in manufacturing.
Singapore’s manufacturing sector experienced a significant downturn in August, with factory output dropping by 12.1% year-on-year, marking a faster contraction than the previous month. The data, released by the Singapore Economic Development Board on September 26, revealed that excluding the typically volatile biomedical sector, factory output declined by 13.3%.
The sharp drop in output was primarily driven by a 20% year-on-year decline in the electronics sector, which plays a crucial role in Singapore’s manufacturing industry. This marks the weakest year-on-year performance since November 2019, with factory output staying in contraction for 11 consecutive months.
The unexpected downturn has led economists to revise their growth forecasts for Singapore, signaling concerns about the outlook for the country’s manufacturing sector. The continuous slump in factory output suggests a broader slowdown, particularly in key industries like electronics, which has prompted further revisions in economic projections.
