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Services growth picks up pace in Q2 at 1.7% y-o-y, manufacturing leads at 8%
GROWTH in Singapore's services sector picked up pace, according to advance estimates of second-quarter performance, while manufacturing continued to lead overall economic expansion, though at a slower pace.
Advance estimates released by the city-state's Ministry of Trade and Industry on Friday morning showed that the services sector - which accounts for a major proportion of economic output - grew by 1.7 per cent in April and May, when compared with the same period a year ago. This was faster than the 1.4 per cent in Q1, and the one per cent in the final quarter of 2016, and may point to a stronger, broad-based recovery for the economy.
Manufacturing, which accounts for about 20 per cent of Singapore's gross domestic product, continued to be the star performer, clocking an 8 per cent growth. The sector grew by 8.5 per cent in Q1, and 11.5 per cent in Q4 2016.
The construction sector continued to languish. It shrank by 5.6 per cent in Q2 this year. In Q1, it shrank by 6.1 per cent, and contracted by 2.8 per cent in Q4 2016.
On a seasonally adjusted, quarter-on-quarter basis, the services sector grew by 0.4 per cent from Q1, during which it shrank by 2.7 per cent.
Manufacturing expanded by 2.4 per cent, stronger than the 0.4 per cent in Q1.
Construction eked out a 4.3 per cent expansion, as opposed to the 14.4 per cent contraction in Q1.
Fuller estimates of Singapore's Q2 2017 economic performance will be released in August.