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SG: Industrial Production
| Consensus | Consensus Range | Actual | Previous | |
| Month over Month | -7.2% | 5.3% | ||
| Year over Year | 14.1% | 10.0% to 14.3% | -0.1% | 16.6% |
Highlights
Singapore industrial production fell 7.2 percent on the month in February after increasing 15.3 percent in January. This volatility over the two months largely reflects the impact of lunar new year holidays. Previously published PMI survey data also showed improved conditions in Singapore's economy in February, with March PMI data scheduled for release next week.
In year-over-year terms, industrial production fell 0.1 percent in February, also weakening from growth of 16.6 percent in January. Growth slowed in the electronics industry, which accounts for nearly half of the sector, with output there increasing 13.7 percent on the year after advancing 34.0 percent previously. Output growth also weakened in year-on-year terms in the transport engineering, precision engineering, chemicals, and general manufacturing industries. Output fell to a less pronounced extent in the volatile biomedical industry. Excluding the biomedical industry, output advanced 3.9 percent on the year in February after increasing 19.9 percent in January.
Market Consensus Before Announcement
Another strong gain is the call for February -- 14.1 percent on year after 16.6 percent in January.
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.