Singapore's February Factory Output Surges 3.8%, Beats Growth Estimates

28 Mar, 2024

Singapore's February Factory Output Surges 3.8%, Beats Growth Estimates

Singapore's factory output expanded by 3.8% in February compared to the same period last year, building on the growth momentum witnessed in January, according to data released by the Economic Development Board (EDB).

This performance exceeded expectations, with economists anticipating a more modest 0.5% increase. The electronics sector, a crucial component of Singapore's manufacturing landscape, experienced a notable turnaround, growing by 2.6% year-on-year after a decline in January.

Despite overall growth, certain segments such as computer peripherals and data storage witnessed contractions. Economists remain cautiously optimistic about sustained growth, highlighting the importance of global demand trends, particularly in electronics and pharmaceuticals.

The recovery in industrial production aligns with positive developments in export data, indicating a potential resurgence in manufacturing activity. However, challenges persist, with certain segments like precision engineering facing significant declines. Nevertheless, analysts anticipate a gradual improvement in manufacturing conditions, especially in the second half of the year, driven by factors such as easing global financial conditions and potential rate cuts by major central banks.