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SG: Industrial Production
| Consensus | Consensus Range | Actual | Previous | Revised | |
| Month over Month | 11.5% | 26.3% | 26.4% | ||
| Year over Year | 6.7% | 6.4% to 14.0% | 29.1% | 16.1% | 16.2% |
Highlights
Singapore industrial production rose at a more moderate but still strong pace in October, with output increasing 11.5 percent on the month after surging 26.4 percent in September. Previously published PMI survey data also showed strong conditions in Singapore's economy in October, with November PMI data scheduled for release early next month.
In year-over-year terms, industrial production rose 29.1 percent in October after increasing 16.2 percent in September. Output in the electronics industry, which accounts for nearly half of the sector, rose 26.9 percent after an increase of 13.9 percent previously. Output in the volatile biomedical industry surged 122.9 percent after a previous increase of 55.3 percent. Excluding the biomedical industry, output rose 15.8 percent on the year in October after advancing 5.5 percent in September.
Market Consensus Before Announcement
The consensus sees industrial production up 6.7 percent on year in October versus a remarkable 16.1 percent on year in September.
Definition
The industrial production index measures changes in the volume of industrial production with respect to the base year. The index charts the growth in production of each major industry and of the manufacturing sector. Industrial Production measures the physical output of the nation's factories, mines and utilities. Factories manufacture various products, and the industrial production indexes have been prepared as a comprehensive indicator of wide-ranging production activities for such products and are regarded as some of the most important among economic indexes.
Description
Investors want to keep their finger on the pulse of the economy because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers more subdued growth that won't lead to inflationary pressures. By tracking economic data such as industrial production, investors will know what the economic backdrop is for these markets and their portfolios.
Industrial production provides key industry data for export-dependent economies. It is highly sensitive to the business cycle and can often predict future changes in employment, earnings and income. For these reasons industrial production is considered a reliable leading indicator that conveys information about the overall health of the economy. This report has a big influence on market behavior. In any given month, one can see whether capital goods or consumer goods are growing more rapidly. Detailed data in the report shows which sectors of the economy are growing and which are not.