GDP growth in 2017 down to 3.4%: OCBC

No thanks to slower NODX and manufacturing output.

OCBC trims its 2017 GDP forecast to 3.4%, slightly below the flash print of 3.5%, no thanks to slower non-oil domestic exports (NODX) and industrial production (IP).

According to a report, other than the slow NODX growth of 3.1% in December, the IP contraction by 3.9% was "unexpected."

The cyclical recovery seen in the electronic sector could also take a breather especially given the high base growth seen in 2017.

Business expectations for general manufacturing, electronic and chemicals clusters are the least optimistic in the latest survey, especially with infocomms, consumer electronics and semiconductors segments anticipating softer business prospects over the next six months.

Recent employment prints island-wide also saw an uptick in layoffs in 4Q2017 amidst falling net employment change as well.

Singapore loan growth also moderated to 5.6%, down from 7.1% in November and marking the slowest growth since August 2017.

However, both the Nikkei purchasing managers index (PMI) and manufacturing PMI edged slightly higher in January, "suggesting that growth momentum continues to stay supported into the new year," OCBC said.