Singapore’s industrial production experienced a robust growth of 7.1% year-on-year in July, maintaining the same pace as June, according to Nomura’s latest research summary. This growth was primarily driven by a significant increase in electronics output. Meanwhile, core inflation saw an unexpected decline to 0.5% from June’s 0.6%, attributed to a sharp decrease in retail and other goods inflation and a reduction in electricity tariffs.
The report, authored by Euben Paracuelles and Charnon Boonnuch of Nomura, highlights that the industrial production growth exceeded expectations, with consensus forecasts at 0.9% and Nomura’s own prediction at 1.0%. On a month-on-month basis, seasonally adjusted industrial production rose sharply by 8.2%, a significant turnaround from a 0.8% decline in the previous month.
Nomura maintains its 2025 GDP growth forecast for Singapore at 2.6%, which is above the official forecast range of 1.5% to 2.5%. However, the firm anticipates a marked slowdown in the second half of the year. The 2025 core inflation forecast is reiterated at 0.7%, near the lower end of the official forecast range of 0.5% to 1.5%, suggesting a benign inflation outlook for the remainder of the year.
These figures underscore the resilience of Singapore’s industrial sector amidst global economic uncertainties, whilst the easing inflation provides some relief to consumers. The continued strength in industrial output, particularly in electronics, is a positive sign for the country’s economic trajectory.
“`
