Singapore's industrial output in August fell 12.1% year-on-year, contracting for an 11th consecutive month and more steeply than expected, mainly due to a slump in electronics, official data showed on Tuesday.
Economists had expected a 3.1% year-on-year contraction in August, according to a Reuters poll. On a month-on-month and seasonally adjusted basis, industrial production fell 10.5% in August, missing economists' expectation of a 1.7% contraction.
Electronics, a key contributor to Singapore's industrial output, plunged 20% year-on-year in August, data from the Singapore Economic Development Board showed, reflecting faltering global demand.
"The extent of the contraction back into negative double-digit territory doesn't bode very well for manufacturing growth," said OCBC economist Selena Ling, adding that if the trend continues, it is possible for Singapore's 2023 economic growth to come in at the lower end of the official forecast.
Last month, the trade-reliant nation downgraded slightly its economic forecast to 0.5% to 1.5% for this year after it narrowly averted a recession in the second quarter. (Editing by Kanupriya Kapoor)