SINGAPORE: Singapore’s factory output in April performed better than expected, but economists are saying that it is near its peak performance. This is because the electronics cluster’s expansion, which has driven much of overall output growth, is expected to slow down. What matters now, they said, is when the weaker clusters will start catching up to stabilise economic growth. Nomura economist Brian Tan said: “I expect it (electronics output expansion) to moderate, and it will moderate quite gradually. The problem is that if you look at the rest of the clusters, everything is negative.”
The Economic Development Board on Friday reported that total industrial output increased by 6.7 per cent year-on-year last month, beating the 6 per cent consensus estimate in a poll of economists by Bloomberg, and making it the ninth straight month of expansion. March’s industrial output was revised higher to 11 per cent, from an earlier 10.2 per cent. On a seasonally-adjusted, month-on-month basis, April’s output still managed to expand by 0.1 per cent from a strong March, which grew by 5.7 per cent. Excluding the volatile biomedical sector, output expanded by a larger 15.5 per cent year-on-year in April. On a month-on-month basis, it grew by 5.4 per cent from March.
