, Singapore

Analysts predict January industrial production to hit 9.3%

Thanks to healthier external front.

According to DBS, idustrial production for January due today will likely post a healthy showing of 9.3% YoY, up from 6.2% previously. Continued improvement on the external front will drive the expansion.

In fact, this is supported by the upside surprise in Jan13 PMIs. Overall manufacturing PMI reverted back to expansion
(50.5) after a brief dip into contraction territory (49.7) in December.

Here's more from DBS:

In addition, electronics PMI in the month staged a strong showing, posting a reading of 52.0, up from 50.1 previously.

Plainly, the fact that the spike up in PMIs coincides with the supposedly Chinese New Year lull does imply that companies are anticipating stronger orders beyond the festive season.

This was reinforced by the healthy upticks in the new orders and production indexes for both manufacturing and electronics sectors. 

The increase in the inventory index also suggests some degree of restocking in anticipation of higher demand.

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