Raging inflation, cooling growth double-punches Singapore in Q1

As if anemic manufacturing wasn't enough, Singapore's goods will also stay pricey in the first quarter, said OCBC.

The silver lining is that a recovery seems to be offing, at least according to improving indicators like February's PMI data.

Here's more from OCBC:

The manufacturing PMI recovered to expansion territory in Feb from 48.7 to 50.4, while the electronics PMI improved further from 50.5 to 51.0, suggesting that the manufacturing trough may be near. While there were some CNY-related seasonal adjustment factors involved, this tallies with our view that Q1 will likely mark the low point in the current cycle. Our 2012 growth forecast stands at 2%, with CPI inflation tipped at 3.5%. The recent FY12 budget with the additional foreign manpower constraints would likely skew the labour cost equation higher. The Q2 manpower survey also pointed to an improvement in the employment outlook from 16% in Q1 to 20% in Q2, led by the public administration/education, finance, insurance, real estate segments.