Singapore manufacturing down 8.8% yoy

Take out biomedical manufacturing output and the tally becomes even worse for January.

Manufacturing ex-biomedical dipped 15.3% from year-ago levels, proving again the role of the biomedical cluster -- in particular the pharmaceuticals segment -- in uplifting the rest of manufacturing.

The only other growing cluster was transport engineering (+13.4%). The rest shrank, with the electronics cluster (-28.4%) leading the manufacturing slide.

The Singapore Economic Development Board attributed the decline "weaknesses in the global economy and lower activities as a result of the Chinese New Year period."

The EDB reported further:

Highlights

On a seasonally adjusted month-on-month basis, manufacturing output increased 3.3% in January 2012. Excluding biomedical manufacturing, output rose 2.8%. On a year-on-year basis, Singapore’s manufacturing output contracted 8.8% in January 2012. Excluding biomedical manufacturing, output declined 15.3%.

Total Manufacturing Performance

On a seasonally adjusted month-on-month basis, manufacturing output increased 3.3% in January 2012. Excluding biomedical manufacturing, output rose 2.8%. On a year-on-year basis, manufacturing output declined 8.8% in January 2012, due to weaknesses in the global economy and lower activities as a result of the Chinese New Year period. Excluding biomedical manufacturing, output contracted 15.3%.

On a three-month moving average basis, manufacturing output in January 2012 increased 3.6% compared to a year ago. 

Performance by cluster
Output of the biomedical manufacturing cluster grew 27.9% in January 2012 on a year-on-year basis. The pharmaceuticals segment expanded 32.5%, mainly due to higher production of active pharmaceutical ingredients. Output of the medical technology segment rose 3.1% in January with healthy export demand for medical devices.

The transport engineering cluster’s output expanded 13.4% year-on-year in January 2012. Growth was supported by the marine & offshore engineering segment which rose 27.0% in January. This was attributed to the completion and delivery of some marine vessels as well as higher percentage of completion in oil rig projects. On the other hand, the aerospace and land transport segments
declined 2.6% and 18.6% respectively.

The general manufacturing cluster’s output shrank 7.9% year-on-year in January 2012. Supported by festive demand, the food, beverages & tobacco segment grew 2.4% in January. However, the miscellaneous industries and printing segments declined 10.0% and 17.9% respectively, mainly due to plant shutdowns during the Chinese New Year period.

The chemicals cluster contracted 12.4% year-on-year in January 2012, with all segments within the cluster recording lower output. Output of the petroleum segment fell 4.7% on the back of weak refining margins. The specialties (-12.0%), petrochemicals (-14.2%) and other chemicals (-22.2%) segments’ output also declined mainly due to plant shutdowns.

The precision engineering cluster declined 13.3% year-on-year in January 2012. The machinery & systems segment saw lower output in refrigeration systems and industrial process control equipment, while the precision modules & components segment registered lower production in metal precision components as well as dies, moulds, jigs and tools.

Output of the electronics cluster was 28.4% lower in January 2012 compared to a year ago as export demand continued to be weak. The decline was broad-based, led by the semiconductors segment which shrank 36.0%.