Manufacturing output down 6.7% in June

The transport engineering and biomedical manufacturing led the decline.

Manufacturing output dipped 6.7% YoY in June as most clusters continue to post declines in output, according to data from the Economic Development Board (EDB). Excluding biomedical manufacturing, output grew 2.1% YoY.

The manufacturing output also slipped 0.7% YoY a three-month moving average basis and inched up 0.2% on a MoM basis.

Transport engineering saw its output drop 33.9% YoY in June, with all segments recording a decline. The aerospace segment contracted 23% YoY as the volume of aircraft repair and maintenance work remained low, whilst the marine and offshore engineering segment plunged 53.5% YoY. Overall, the transport engineering cluster fell 15.7% in the first six months of 2020 compared to the same period last year.

Biomedical manufacturing output also crashed 30.6% YoY over the same period, even as the medical technology segment grew 5.9%. The pharmaceutical segment was the main drag as it fell 37.4% YoY. On a YTD basis, the biomedical manufacturing cluster grew 26.6% YoY.

Output from the general manufacturing cluster contracted 13.9% YoY in June as all segments posted output declines. The food, beverage and tobacco segment slipped 2.7%, whilst the printing and miscellaneous industries segments declined 24.1% and 26.5% YoY respectively. General manufacturing industries cluster declined 10.9% YoY on a YTD basis.

Further, the chemicals output fell 12.1% YoY, with only the petrochemicals recorded output increase. The other chemicals, specialties and petroleum segments contracted 21.5%, 27.3% and 34.2% YoY respectively. In the first six months of 2020, output of the chemicals cluster fell 5.5% compared to the same period in 2019.

On the other hand, electronics output rose 17.3% YoY in June, thanks to the semiconductors segment which grew 26% YoY, supported by demand from cloud services and data centres, as well as 5G markets. In contrast, the other electronic modules and components and computers and data storage segments dipped 10.2% and 35.9% respectively. Overall, output of the electronics cluster fell 0.4% YoY in the YTD.

Lastl, the precision engineering cluster saw its output edge up 9.1% YoY, with both segments recording output growth. The machinery and systems segment grew 11.1% YoY on account of higher production of semiconductor equipment, whilst the precision modules and components segment increased 2.9% with higher output in optical products and metal precision components.

Overall, the precision engineering cluster grew 11.6% YoY YTD.

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