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Singapore manufacturing grows 1.1% in Q2 from a year ago, but services sector slows
SINGAPORE'S manufacturing sector in the second quarter of 2016 expanded for the first time in over a year, while the services sector grew at its slowest pace over the same period.
The changes in pace of growth for these two sectors was even more stark in quarter-on-quarter terms. After it registered a heady Q1 quarterly expansion, manufacturing in Q2 still managed to expand. Services, however, shrank for the second quarter.
These full estimates released by the Ministry of Trade and Industry (MTI) on Thursday morning showed that manufacturing grew by 1.1 per cent year-on-year in the three months ended June 30, 2016. This was its first quarterly growth since at least six quarters ago, and is a turnaround from the 0.5 per cent fall in Q1.
Growth in services, however, slowed from Q1's 1.7 per cent to 1.4 per cent in Q2, the slowest since at least six quarters ago.
The construction sector registered the strongest growth at 3.3 per cent, slower than the 4 per cent previously.
In quarter-on-quarter terms, manufacturing managed to expand by 1.0 per cent, even after Q1's heady growth of 18.7 per cent.
Services, however, shrank again in Q2. It fell by 0.6 per cent quarter-on-quarter in Q2, extending Q1's 4.9 per cent decline.
Construction expanded at a quicker pace in Q2 at 5.3 per cent, faster than 1.4 per cent in Q1.
Even with manufacturing's uptick in Q2, MTI cautioned against optimism over its sustainability: "While the manufacturing sector has seen an improvement in performance on account of pockets of strength in segments such as semiconductors and biomedical manufacturing, this may not be sustained in the light of sluggish global economic conditions."
MTI, however, was more upbeat about future growth in services. It sees an upswing in tourist arrivals, and better performances in informations and communications, education and heath segments.