Ma nufa c turing is e stima te d to ha ve c o ntra c te d b y 1.5 p e r c e nt, c o mp a re d to a 24.3 p e r c e nt c o ntra c tio n in the first q ua rte r. This re fle c ts c hie fly a sp ike in o utp ut re g iste re d b y the vo la tile b io me d ic a l ma nufa c turing c luste r, a nd a n imp ro ve me nt in the e le c tro nic s c luste r d ue to inve nto ry re sto c king .
O ve ra ll, the se rvic e s p ro d uc ing ind ustrie s re ma ine d we a k; c o ntra c ting b y 5.1 p e r c e nt in the se c o nd q ua rte r, simila r to the first q ua rte r. The ma jo rity o f the se rvic e s p ro d uc ing ind ustrie s c o ntinue d to se e d e c line s in ye a r-o n-ye a r te rms. The who le sa le a nd re ta il tra d e se c to r c o ntinue d to c o ntra c t, a lb e it a t a slo we r p a c e with sma lle r d e c line s in no n-o il d o me stic e xp o rts (NO DX) a nd no n-o il re -e xp o rts (NO RX). Fina nc ia l se rvic e s a lso sa w a le ss se ve re c o ntra c tio n a s g e ne ra l ma rke t se ntime nts imp ro ve d . O n the o the r ha nd , the ho te ls a nd re sta ura nts se c to r wa s we ig he d d o wn b y the slump in to urist a rriva ls.
Subdue d o utlo o k fo r re st o f the y e ar
No twithsta nd ing the imp ro ve d p e rfo rma nc e in the se c o nd q ua rte r, the o utlo o k fo r the re st o f the ye a r re ma ins la rg e ly unc ha ng e d – o f a we a k re c o ve ry susc e p tib le to d o wnsid e risks. Fo r insta nc e , rising une mp lo yme nt a nd re d uc e d ho use ho ld sp e nd ing in the a d va nc e d e c o no mie s suc h a s the US a nd the Euro zo ne re fle c t c o ntinue d we a kne sse s in the g lo b a l e c o no my. Ho using ma rke ts in ma ny le a d ing e c o no mie s ha ve ye t to b o tto m o ut, while fina nc ia l institutio ns a re still in the p ro c e ss o f d e le ve ra g ing . At this junc ture , the re is no e vid e nc e ye t o f a d e c isive imp ro ve me nt in fina l d e ma nd .
A size a b le p a rt o f Sing a p o re ’ s ma nufa c turing up tic k in the first ha lf o f 2009 c a me fro m a sp ike in b io me d ic a l ma nufa c turing o utp ut a nd e le c tro nic s inve nto ry re sto c king , b o th o f whic h ma y no t b e susta ine d .
