How industries performed as Singapore economy growth eases

The economy eased by 4.1% in the third quarter of 2022.

When the global economy suffered from energy crunch and strict lockdowns, Singapore’s economy was also affected as its growth eased by 4.1% year-on-year (YoY) in the third quarter (Q3) of 2022.

Amongst the sectors that posted a slower pace of growth was the manufacturing sector, which expanded 0.8% YoY in Q3 2022 from 5.6% growth last quarter.

“Growth during the quarter was supported by output expansions in the transport engineering, general manufacturing and precision engineering clusters, which outweighed output declines in the electronics, chemicals and biomedical manufacturing clusters,” said the Ministry of Trade and Industry (MTI). 

On a quarter-on-quarter seasonally-adjusted basis, the sector shrank by 3.8% from the 0.4 per cent expansion in the second quarter. 

The finance and insurance sector growth slowed to 0.4% YoY in Q3 from 2.4% in Q2. This was due to a “contraction in the banking segment on the back of a fall in net fees and commissions income.” 

The accommodation sector contracted by 1.9% YoY, moderating from the 3.4% contraction in the preceding quarter. 

“The performance of the sector continued to be weighed down by the decline in government demand for quarantine and stay-home-notice dedicated facilities relative to a year ago, even though the recovery in international visitor arrivals provided some support,” said MTI.

Performed well

Construction industry went up by 7.8% YoY, accelerating from 4.8% in the previous quarter. The wholesale trade sector expanded by 5.4% YoY, speeding up from 1.6% in the previous quarter due to machinery, equipment and supplies, and fuels and chemicals segments.

Retail trade sector expanded by 8.9% YoY, extending 12.3% growth in the preceding quarter.

The transportation and storage sector improved to 6.8% YoY from 5% in the second quarter.

“Within the sector, the air transport segment recorded strong growth, mainly due to an increase in air passengers handled from a low base in the same quarter of last year. At the same time, the land transport and water transport segments also recorded expansions,” said MTI.

The food and beverage services sector’s growth soared by 30.5% YoY from a low base in 2021, extending the 23.4% expansion in the second quarter. 

It was driven by strong pickup in sales volume at food caterers, restaurants, and cafes, food courts, and other eating areas.

The information and communications sector expanded by 6.2% YoY, moderating from the 9.8% growth in the previous quarter. Growth was led by the IT and information services segment, which was  backed by the “strong performance of IT development, consultancy, data hosting and related activities.”

The real estate sector went up by 11.7% YoY and professional services expanded by 8.3% YoY.