Manufacturing goods went up by 8% in Q2.
Based on the advance estimates by the Ministry of Trade and Industry of Singapore, the manufacturing sector expanded its growth from the first quarter of the year to Q2 with its 8% increase.
This growth was supported by the electronics and precision engineering clusters, which saw robust expansions on the back of strong demand for semiconductors and semiconductor manufacturing equipment respectively.
According to HSBC Global Research economist Joseph Incalcaterra, the MTI remains optimistic with the sector.
“Within the advance GDP estimate, the ministry assumes a strong rebound in June industrial production. This is not impossible to achieve, particularly given the fact that semiconductor production is expected to remain strong as Asia’s iPhone supply chain ramps up,” he said.
Still, however, any downside surprise in IP data would suggest a downward revision to 2Q GDP in the final print, the economist explained.