, Singapore

Manufacturing grew a decent 6.6% in May

Transport engineering and biomedical manufacturing sub-sectors led the surge with more than 30% growth each.

Meanwhile, the chemicals and electronics sub-sectors struggled with single-digit declines, as output and export demand for their respective products faltered.

Here's more from EDB:

On a year-on-year basis, Singapore's manufacturing output grew 6.6% in May 2012. Excluding biomedical manufacturing, output increased 2.0%. On a seasonally adjusted month-on-month basis, manufacturing output rose 1.8% in May 2012. Excluding biomedical manufacturing, output grew 0.3%.

Total Manufacturing Performance. On a year-on-year basis, manufacturing output grew 6.6% in May 2012. Excluding biomedical manufacturing, output increased 2.0%. On a three-month moving average basis, manufacturing output increased 0.8% in May 2012, compared to a year ago. On a seasonally adjusted month-on-month basis, manufacturing output rose 1.8% in May 2012. Excluding biomedical manufacturing, output grew 0.3%.

Performance by cluster. The transport engineering cluster expanded 35.4% year-on-year in May 2012, with all segments recording higher output. Supported by growth in rig building and ship building activities, the marine & offshore engineering segment expanded 44.0%. Growth of the aerospace segment was also healthy at 23.2%, due to strong demand for engine repair jobs from commercial airlines. Output of the transport engineering cluster in the first five months of 2012 increased 25.3%, compared to the same period in 2011.

Output of the biomedical manufacturing cluster grew 32.8% in May 2012 on a year-on-year basis. The pharmaceuticals segment expanded 39.1%, supported by higher production of active pharmaceutical ingredients, while the medical technology segment grew 6.9%. On a year-to-date basis, output of the biomedical manufacturing cluster was 16.3% higher, compared to the same period a year ago.

Output of the general manufacturing cluster grew 3.7% year-on-year in May 2012, with growth in the food, beverages & tobacco (7.5%) and miscellaneous industries (4.6%) segments more than offsetting the decline in the printing (-3.3%) segment. The food, beverages & tobacco segment saw higher production of concentrates for beverages and biscuits, while the miscellaneous industries benefited from higher demand for steel structural products and primary batteries. On a year-to-date basis, the general manufacturing cluster's output grew 2.8%, compared to the same period last year.

The precision engineering cluster declined 0.4% year-on-year in May 2012. The precision modules & components segment's output increased 2.5% with higher output of metal precision components and plastic precision engineering parts. On the other hand, the machinery & systems segment fell 3.0% on the back of weaker demand for hoisting equipment and machine tools. On a year-to-date basis, output of the precision engineering cluster grew 1.4%, compared to the same period a year ago.

The chemicals cluster declined 4.1% year-on-year in May 2012. The petroleum segment grew 3.3%, but this was more than offset by declines in the other segments. The petrochemicals segment contracted 1.3% due to plant shutdowns for maintenance, while the specialty chemicals segment declined 8.0%, as a result of lower output of industrial gases and paints. On a year-to-date basis, chemicals output declined 4.6%, compared to the same period a year ago.

Output of the electronics cluster was 9.7% lower in May 2012 compared to a year ago. Apart from the data storage segment (29.4%), export demand for other electronics segments remained weak. The electronic modules & components and semiconductor segments contracted 12.1% and 18.1%, respectively. Cumulatively, output of the cluster in the first five months of 2012 fell 15.2%, compared to the same period last year.

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