Industrial production index may have expanded 9.6% in January 2011

The 20.9% growth for NODX is an encouraging sign for output growth.

DBS said, a pullback in sequential growth is possible given an overhanging Chinese New Year effect. Manufacturing plants in China, key buyers of Singapore manufactured components and intermediate products, typically wind down their production ahead of the Chinese festive season. Such seasonal effect usually creates volatilities in export and production figures and hence should not be mistaken as demand slowing.

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