, Singapore
Photo by Clayton Cardinalli on Unsplash

Signs of a broader recovery in manufacturing could emerge in mid-2024: expert

An expert said manufacturing activity has likely bottomed following the 7.4% YoY jump in output in October.

Experts expect Singapore’s manufacturing momentum to strengthen in 1Q24 and see signs of a broader recovery in manufacturing by mid-2024.

According to UOB Senior Economist Alvin Liew, central banks in major Advanced Economies (AE) may begin to cut policy rates as inflation in their respective
economies moderate and inch closer to the 2% objective towards mid-2024.

“In particular, we expect the Federal Reserve to begin its rate cut cycle in mid-2024, with a cumulative 75bps of rate cuts pencilled in our 2024 forecast. In China, further policy support, including via interest rate cuts, may portend some uplift in external prospects,” Liew said.

Gan said the consequent easing of financial conditions supporting consumption and investment activity will imply a gradual recovery in external demand. 

RHB’s Acting Group Chief Economist, Barnabas Gan, for his part, said improving global trade winds and gradual recovery in China-centric numbers will improve the manufacturing performance of Singapore in 1Q24.

“Our view for Singapore’s manufacturing momentum to strengthen into 4Q23 has materialised very nicely, with its sequential growth surging 9.8% MoM seasonally adjusted (SA) in October 2023, against an upward revision of September’s growth to +13.1% MoM SA,” Gan said.

“We expect manufacturing momentum to improve in the next two quarters on the back of stronger global trade and manufacturing trends already seen year-to-date,” Gan added.

Follow the links for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!