SINGAPORE (Reuters) - Singapore’s industrial production likely rose at the fastest annual pace in seven months in July, thanks to a global electronics boom, a Reuters poll showed.
The median estimate in the survey of 11 economists was for industrial output to rise 14 percent from a year earlier.
That would be the biggest increase since December, when manufacturing output expanded 22.4 percent from a year earlier.
“We are likely to get blockbuster year-on-year figures because of a low base last year,” said OCBC economist Selena Ling.
In June, manufacturing output exceeded market expectations, expanding 13.1 percent, helped by strong electronics and pharmaceutical output.
“The trend in manufacturing has remained strong throughout 2017 because of improvements in global demand,” Moody’s said in a research note on Aug. 15, adding that electronics manufacturers have been “the primary beneficiary”.
In the poll, industrial production is seen contracting 3.4 percent in July on a month-on-month and seasonally adjusted basis, after rising 9.7 percent in June.
Ling of OCBC said the month-on-month contraction would be no surprise after exceptional strong on-month growth in June.
Singapore and other trade-reliant Asian economies have received a major boost this year from resurgent in global demand. That has led to a solid increase in the city-state’s production of electronics products, including semiconductors.
Reporting by Fathin Ungku; Editing by Richard Borsuk