Factory production falls, ending 7 months of rises

Local output dips by 1.3% on year in Feb on weakness in biomedical, electronics clusters

- Rosalind Ang

Factory production in Singapore fell in February, breaking a seven-month rising streak, after the biomedical and electronics clusters contracted year on year.

Total output decreased by 1.3 per cent year on year, after a revised 8 per cent increase in January and a 5.9 per cent rise last December. This was lower than the forecast growth of 7 per cent, according to economists polled by Bloomberg.

Excluding the more volatile biomedical industry, output increased by 0.3 per cent, according to data from the Economic Development Board on March 26.

On a seasonally adjusted month-on-month basis, total manufacturing output decreased by 7.5 per cent. Excluding biomedical manufacturing, output decreased by 7.9 per cent.

Precision engineering output grew the most, rising by 16.2 per cent in February year on year. Both of its segments registered output growth.

The precision modules and components segment expanded by 20.2 per cent, led by higher output of plastic and metal precision components, dies, moulds, tools, jigs and fixtures and optical instruments.

The machinery and systems segment increased by 14.5 per cent, on account of higher production of semiconductor equipment and measuring devices.