3 things that will likely push manufacturing output this year

It could beat last year's growth of 3.6%.

Manufacturing output continues to ride on Singapore's robust exports.

For the past month, the industrial production index posted a 10.2% growth. According to UOB KayHian, this may continue until the end of the year, with overall manufacturing output growing 4%, beating last year’s expansion of 3.6%.

This will be underpinned by three things. For one, the stronger economic growth in key final demand destinations, namely, the US, EU and China, will likely increase manufacturing output by the city-state.

The improving growth in ASEAN economies, supported by higher commodity prices will also boost the industrial production index.

Finally, the sector might see stronger demand from the semiconductor segment, supported by the cyclical smartphone super-cycle.

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