Singapore’s manufacturing growth may plunge to 5.1% in 2012

Manufacturing output in Singapore in 2011 has shown surprising resilience, driven by strong growth in the volatile pharmaceuticals and biomedical sectors, which has helped to offset weakness in electronics and general manufacturing. Manufacturing output growth is expected to slow from 7.2% in 2011 to 5.1% in 2012, according to UOB ETR. This is due to subdued external demand for electronics as key export markets in the US and Europe continue to be constrained by debt problems, while biomedical output is expected to slow after recording an 89% yoy growth in 3Q11.

Singapore’s Oct 11 PMI reading at 49.5 showed a fourth straight month of contraction in manufacturing expectations, although there was a slight improvement from Sep 11’s 48.3. A bright spot was the expansion in the PMI for electronics, which rose to 52.1 in Oct 11 from 47.2 in Sep 11, following three straight months of contraction.