January PMI seen to swell to 9.6% YoY

The industrial production index for the previous month due today grew from a mere 9% in December.

Non-oil domestic exports for January also improved to 20.9% YoY.

In a statement, DBS Bank said the figures represent encouraging signs for output growth in the face of rumors about the slowdown in global demand and the possible slump of the electronics sector.

The bank added that a pullback in sequential growth is possible due to an “overhanging Chinese New Year effect.”

“[As] manufacturing plants in China, key buyers of Singapore manufactured components and intermediate products, typically wind down their production ahead of the Chinese festive season… volatilities in export and production figures [are expected but] should not be mistaken as demand slowing,” DBS said.

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