Bright spots in February include a slim 2.6 per cent increase in output by the key electronics industry, after it shrank 4.7 per cent in January. - ST FILE
SINGAPORE: Singapore’s factory output extended its expansion in February, growing 3.8 per cent year on year and beating analysts’ expectations, according to data out on Tuesday (March 26).
This topped the 0.5 per cent growth forecast made by economists in a Bloomberg poll.
Excluding the more volatile biomedical industry, output increased by 1.4 per cent in February.
However, January’s growth was revised lower to 0.6 per cent from an earlier estimate of 1.1 per cent, the figures from the Economic Development Board showed.
Bright spots in February include a slim 2.6 per cent increase in output by the key electronics industry, after it shrank 4.7 per cent in January.
Within the industry, the infocomms and consumer electronics segment grew 30.9 per cent, while semiconductors added 2.1 per cent and other electronics modules and components increased by 0.3 per cent. However, the computer peripherals and data storage segment contracted 10.7 per cent.
The biomedical industry also returned to growth in February, with output expanding 27.4 per cent after shrinking 25.9 per cent in January.
The pharmaceutical segment grew 73.2 per cent, with the production of more biological products and a different mix of active pharmaceutical ingredients.
Conversely, the medical technology segment declined 3.9 per cent, on the back of lower exports of medical devices, EDB said.
The chemicals sector was another bright spot in February, with output rising 11.2 per cent. The petrochemicals segment grew 22.3 per cent on the back of a low production base in 2023, partly due to plant maintenance shutdowns, EDB noted.
The specialities segment and petroleum segments also grew, with the specialities segment recording higher output of mineral oil additives. In contrast, the other chemicals segment declined 8.2 per cent due to lower output in fragrances.
Output also increased in transport engineering, with the sector recording a rise of 19.6 per cent. Within this sector, the aerospace segment expanded 37.3 per cent from a low production base a year ago due in part to component shortages, EDB said.
However, the marine and offshore engineering segment declined 3.5 per cent, with a lower level of activity in the shipyards due to the Chinese New Year holiday.
Other industries, however, saw production decline.
General manufacturing’s output dropped 3.4 per cent. Its printing and food, beverages and tobacco segments grew, with the latter recording higher output of milk powder. But the miscellaneous industries segment contracted, led by lower production of construction related materials.
Precision engineering output also slumped, as output fell 19.9 per cent.
The precision modules and components segment contracted 15.1 per cent, led by lower output of metal precision components, optical instruments as well as dies, moulds, tools, jigs and fixtures, EDB said.
The machinery and systems segment shrank 20.4 per cent, mainly due to lower production of semiconductor related equipment. - The Straits Times/ANN
