Singapore’s industrial output on a drastic slide in February

After a dire showing in export performance.

Non-oil domestic exports (NODX) fell by 9.7% YoY in February, the worst month in two years.

According to a report by DBS, industrial production growth in Feb15 will likely disappoint. Industrial output is expected to decline by 0.6% YoY although market is looking for an even more drastic slide after a dire showing in export performance in the same month.

DBS says that while export figures are reported in nominal terms and tend to be more susceptible totechnical distortions, some degree of base and seasonal effects will be at play and will weigh down on the headline IP number. Nevertheless, a poor showing is almost a given.

Specifically, although key electronics cluster have posted a positive blip in Dec14-Jan15, output is expected to dip in February due to weak demand and structure hollowing out within this industry.