Singapore Sept. industrial output seen shrinking 2.6% on-month
The global economic slowdown is putting pressure on local manufacturers in the city state and may prompt a policy easing by the central bank
Singapore’s industrial production in September is expected to have contracted from the previous month, a Reuters poll showed, underscoring the pressures local manufacturers face from weak global demand.
Manufacturing output in September is forecast to have declined 2.6 percent from the previous month on a seasonally-adjusted basis, according to the Reuters survey. In August, output was flat on a month-on-month basis, having contracted for three straight months.
Industrial production probably rose 0.6 percent on a year-on-year basis, according to the median forecast in a Reuters survey of 10 economists. In August, output rose 0.1 percent.
Sluggish exports and depressed demand for offshore drilling rigs have weighed on the city state’s manufacturing sector.
On Oct. 14, Singapore’s central bank held policy steady despite a surprisingly sharp economic contraction in the third quarter.
However, some analysts say the weak inflation and growth outlook will likely force policymakers to ease.