Industrial production to register a meager 2.6% in June: DBS

But an upside surprise awaits as export sales rose 6.7%.

According to DBS:

Industrial production index for June is likely to report a 3% YoY expansion. But based on the advance estimates on GDP growth in the second quarter, industrial production for June is expected to register 2.6%. We reckon that there could be an upside surprise to that as most recent non-oil domestic export numbers came in stronger than  expected.

Export sales rose 6.8% YoY and 6.7% MoM sa. That’s a solid figure considering the sluggish global demand. And it’s none other than pharmaceutical exports that provided the main boost. Pharmaceutical product sales surged 24% YoY in the month. With that, we can look towards the biomedical segment to deliver this upside surprise in the overall industrial production index.