Singapore’s industrial production (IP) demonstrated unexpected strength in July, with a robust 8.2% month-on-month seasonally adjusted increase, according to UOB Global Economics and Markets Research. This growth rate, the fastest since July 2024, significantly outpaced Bloomberg’s estimate of 1.1% and UOB’s own forecast of 0.9%. Year-on-year, IP rose by 7.1%, surpassing expectations of 0.9%.
The impressive performance was largely driven by non-biomedical manufacturing sectors. Electronics, a major contributor, saw a 12.3% month-on-month increase, buoyed by a rebound in semiconductors. Precision engineering and transport engineering also contributed to the growth, with increases of 4.3% and 7.5% respectively.
Despite a decline in biomedical manufacturing, which fell by 18.7% month-on-month, the overall IP growth was supported by strong performances in other sectors. Electronics output, which accounts for 37.4% of overall IP, expanded by 13.1% year-on-year, driven by semiconductors and info-communications products.
UOB’s report highlighted that Singapore’s first half of 2025 GDP growth was resilient at 4.3% year-on-year, supported by export front-loading. However, the bank anticipates a slowdown in the second half due to potential US tariffs. Despite the strong July IP figures, UOB maintains its GDP growth forecasts for 2025 and 2026 at 2.2% and 1.5%, respectively. The report suggests that any future economic payback might impact trade-related services more than manufacturing.
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