Friday, February 24, 2012

Singapore production shrinks most since May on Lunar New Year

Singapore’s industrial production fell the most in eight months in January as factories reduced output during the Lunar New Year holiday and demand for electronics eased, reported Reuters.

Manufacturing slid 8.8% from a year earlier after a revised 25.2% gain in December, the Economic Development Board said today. The median of 17 economists surveyed by Bloomberg News was for a 1.6% drop.

Demand for goods made in the region has also weakened as Europe faces its second recession in less than three years, contributing to an economic contraction in Singapore last quarter.

Singapore’s industrial production climbed a seasonally adjusted 3.3% in January from December, when it rose a revised 8.9% from the previous month, today’s report showed. The median of nine estimates in a Bloomberg News survey was for a 3.2% gain.

Electronics production decreased 28.4% from a year earlier, while pharmaceutical output climbed 32.5% after surging a revised 179.7% in December.

The index was rebased from 2007 to 2011, today’s statement showed.

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