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Singapore industrial output seen up in May y-o-y on electronics strength: poll
[SINGAPORE] Singapore's industrial production in May is expected to have risen for the tenth consecutive month year-on-year, a Reuters poll showed, thanks to strong output in electronics.
A Reuters poll of 12 analysts forecast manufacturing output in May to be up 7.4 per cent on a year-on-year basis, versus a 6.7 per cent increase in April, according to the median forecast.
On a month-on-month seasonally adjusted basis, however, industrial production is seen down 0.7 per cent last month, from April's 0.1 per cent gain.
"We expect industrial production to hold up, with electronics output still quite strong, in line with electronics exports," said Nomura economist, Brian Tan.
Singapore is among export-reliant Asian economies benefiting from a general uptick in global demand in recent months.
Robust shipments of electronics - up 23.3 per cent year-on-year in May - have continued to support the city state and prompted economists to raise their forecasts for Singapore's growth this year.
Mr Tan expects exports of electronics to slowdown more gradually than initially thought.
"It's only next year that we may see a sharper slowdown when favourable base effects reverse," he said.
Others warn that Singapore's manufacturing output is overly dependent on the electronics sector.
"We remain cautious on the manufacturing sector, as demand is not broad-based," Edward Lee, head of Asean economic research at Standard Chartered Bank, wrote in a research note.