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Singapore's services growth picks up pace; manufacturing still leads economic expansion in Q2
SINGAPORE'S services sector showed signs of improvement in the second quarter, while manufacturing continues to be the star performer, although growth came at a slower pace, according to the latest data released by the Ministry of Trade and Industry on Friday morning.
The services sector expanded by 2.4 per cent in the second quarter compared to a year ago. This was faster than the 1.4 per cent seen in Q1, and growth of one per cent in the fourth quarter in 2016.
Manufacturing, which accounts for a fifth of Singapore's gross domestic product, grew by 8.1 per cent year on year. It had previously clocked 8.5 per cent growth in Q1 and 11.5 per cent in Q4 2016.
Growth during the quarter was mainly driven by the electronics and precision engineering clusters, which expanded on the back of strong global demand for semiconductors and semiconductor-related equipment. On the other hand, the biomedical manufacturing, general manufacturing and transport engineering clusters saw a decline in output.
The construction sector contracted by 5.7 per cent year on year, extending the 6.3 per cent decline in the previous quarter, due to a fall in both private sector and public sector construction output.
On a quarter on quarter, seasonally adjusted basis, services grew by 3.3 per cent from Q1, a reversal of the 3 per cent contraction seen in the previous period.
The manufacturing sector expanded by 2.9 per cent, accelerating from the 0.3 per cent growth in the previous quarter.
As for construction, the sector rebounded from the 15 per cent contraction in the preceding quarter to post growth of 4.9 per cent in the second quarter.