Singapore's manufacturing down in September, but inflation accelerates

Singapore's manufacturing output grew 11.8 percent in September from a year earlier. However, on a month-on-month seasonally-adjusted basis, output shrank 1.2 percent. In August, manufacturing output had fallen 1.3 percent from July.

The Economic Development Board reported yesterday that output from the biomedical sector fell 12.3 percent in September from a year earlier due to maintenance shutdown in a pharmaceutical plant as well as the lower value of pharmaceutical products made.

Electronics output grew 20.4 percent last month. This was a slowdown from 29.2 percent and 30.7 percent growth in August and July respectively.

Overnight in the US, the Conference Board had reported that its consumer confidence index had fallen to 92.8 in October, the lowest level in seven months, from 96.7 last month. If consumer spending in the US weakens in the coming months, manufacturing in Singapore is likely to follow.

On Monday, Singapore's Department of Statistics had reported that the consumer price index (CPI) had risen 2 percent in September year-on-year. Compared to August, the CPI was up 0.4 percent.

With output declining and inflation rising, the economic recovery in Singapore looks increasingly in jeopardy.