Chart of the Day: Manufacturing sector to make stellar impact on GDP growth by end-2014

GDP could jump to 4.4%.

Singapore's impressive second quarter numbers gave a glimpse to a rather glitzy future for the country's end-2014 GDP growth. With manufacturing, precision engineering and machinery likely to be the outperformers for the next 6 months, GDP growth is predicted to rocket to 4.4% this year.

According to a research by Standard Chartered, the growth outlook for Q2 and beyond looks bright. Singapore’s manufacturing PMI expanded for 4M-2014; the readings for new orders, production and the order backlog were all positive, boosting the headline PMI. 

Here's more from Standard Chartered:

The Singapore Economic Development Board’s latest Business Expectations Survey showed cautious optimism across industries. Wholesale and retail trade, financial services and manufacturing all showed improvements from the previous quarter.

Within services, negative readings for real estate and retail trade likely reflect the impact on sentiment from government measures aimed at cooling the housing market and motor vehicle sales.

Within manufacturing, precision engineering and machinery/systems have the brightest outlook for the next six months. We expect external demand to boost GDP growth to 4.4% this year from 3.9% in 2013.