Chart of the Day: Industrial production contracted 7.4% in May

The contraction is attributed to the circuit breaker measures implemented.

This chart from UOB shows that Singapore’s industrial production contracted 7.4% YoY in May, marking its first contraction in three months. This compares to market expectation for an expansion of 7.7% YoY.

The contraction is attributed to the circuit breaker measures which spanned across the entire month of May.

Manufacturing momentum fell in the transport engineering cluster with a drop of 40.7%, led especially by the aerospace segment with a 30.1% fall as airlines grounded aircraft in response to the travel restrictions.

Circuit Breaker measures, as well as lower oil prices, also negatively impacted the marine & offshore engineering segment, which plunged 55.1% as employees were unable to carry out work during May.

Lacklustre export demand had also dragged the general manufacturing segment and the chemicals segment which decreased 26.9% and 13.5%, respectively.