SINGAPORE’S IP CONTINUES TO STAGE A REBOUND

SINGAPORE - Industrial production here was considerably stronger in May than the market expected, and grew sequentially for the third consecutive month. IP rose by 1.2% month-on-month from an upwardly-revised 3.6% in April. On a year-on-year basis, growth was 2.1% compared to 5.0% in March (Figure 2). ANZ Bank comments that industrial production in Singapore is signalling a rebound in GDP growth. “IP is the best single proxy indicator of GDP growth in Singapore,” says ANZ. “Using April and May IP data, initial estimates put GDP in Q2 at 2-2.5% q/q sa, from 0.4% in Q1.