Singapore manufacturing output rises 6.8% in July driven by precision engineering

SINGAPORE – Singapore’s manufacturing output grew in July, as all clusters except biomedical manufacturing and chemicals recorded growth. Total factory output climbed 6.8 per cent year on year in July, after a revised 7.5 per cent rise in June. The expansion surpassed the 6.7 per cent growth forecast by economists in a Bloomberg poll. Excluding the more volatile biomedical manufacturing industry, output increased 8 per cent. Output from the precision engineering cluster saw the largest growth in July, jumping 17.7 per cent year on year. Within the cluster, the machinery and systems segment expanded 18.2 per cent, driven by higher production of semiconductor equipment. The precision modules and components segment grew 15 per cent, led by optical instruments, electronic connectors, metal precision components, and dies, moulds, tools, jigs, and fixtures. The electronics industry, accounting for nearly half of Singapore’s manufacturing output, saw an increase of 11.2 per cent year on year, led by infocomms and consumer electronics as well as semiconductors segments, due to sustained AI-related demand. Semiconductor output surged 8 per cent, infocomms and consumer electronics added 51.7 per cent, and computer peripherals and data storage expanded 0.8 per cent. Other electronic modules and components grew 2.5 per cent. General manufacturing output increased 4.9 per cent, with most segments reporting growth. The printing segment grew 2.7 per cent, the food, beverages, and tobacco segment expanded 10.4 per cent, while the miscellaneous industries segment shrank 5.9 per cent due to lower production of structural metal products and furniture. Transport engineering was up 10.8 per cent, with land and aerospace segments expanding, but growth was partially offset by the marine and offshore engineering segment, which recorded lower production of oil and gas field equipment. The aerospace segment rose 15.8 per cent, supported by higher production of aircraft parts and sustained maintenance, repair, and overhaul jobs from commercial airlines. Beyond electronics and other growing clusters, Singapore’s other manufacturing industries fared worse in July. Biomedical manufacturing output declined 5.3 per cent from a year ago. Within this cluster, the pharmaceuticals segment fell 14.3 per cent due to a different mix of active pharmaceutical ingredients, and the medical technology segment dipped 2.2 per cent due to softer export orders for medical devices. Chemicals output fell 10.6 per cent, with the petroleum and petrochemicals segments shrinking 7 per cent and 48.7 per cent, respectively, amid plant maintenance, softer demand, and feedstock supply disruptions. Growth in other chemicals and specialties segments was partially offset by higher production of perfumes, fragrances, and additives.