Singapore's industrial production to surprisingly jump 7.7%

Beating the conservative forecast of 5.2%.

According to DBS, industrial production index for Jan2013 is due today while Budget FY2013 was announced yesterday. 

On industrial production, market could be in for a pleasant surprise with its fairly conservative estimate of just 5.2% YoY.

In fact, DBS expectd the headline production index to report an expansion of 7.7%. That makes for an expansion of about 3-4% on the margin.

Here's more from DBS:

As it is, high frequency data are pointing to improvement on the external front. Export performance and industrial production have bottomed and turning around.

Most recent PMIs of key markets as well as Singapore’s own PMI numbers are also showing similar signs. That essentially calls for a better than expected outcome today.

Separately, Budget 2013 was unveiled by Deputy Prime Minister Tharman Shanmugaratnam yesterday. Much in line with expectation, it continues to focus on reinforcing the productivity drive and strengthening the social safety net so as to ensure that growth is inclusive and sustainable.

More foreign labour curbs were announced while the support measures to help companies cope with the transition costs have also increased.

Measures to promote social mobility, sustain a progressive fiscal system, strengthen the social safety nets, as well as to help Singaporeans cope with the rising cost of living have been introduced.

Overall, a healthy surplus of SGD 2.4bn (0.3% of GDP) is expected for FY13, down from a revised surplus of SGD 3.9bn in FY12.