SINGAPORE – Manufacturing output from the electronics industry saw a recovery last month as key segments registered improved performance. As a result, the overall output expanded for the third month in August, the latest data by Economic Development Board (EDB) shows.

Last month’s total manufacturing output grew 4.2 per cent on-year following July’s 3 per cent increase. This came on the back of electronics’ 7.2 per cent expansion – the first increase since March – as the semiconductor and computer peripherals segments grew production by 1.1 per cent and 42.2 per cent respectively. Both figures are an improvement from the previous month.

Although due partly to a lower base last year, the improved output from the electronics sector underpins forecasts by some economists that the industry – which accounts for one-third of Singapore’s manufacturing – will see better external demand towards year-end to enable a firmer economic recovery.

This comes as Markit projects US manufacturing’s purchasing managers’ index to maintain August’s blistering growth pace, indicating further improvement in consumer confidence and capital expenditure.

Meanwhile, pharmaceuticals also saw a 7.5 per cent on-year production increase, slowing down from July’s 28.3 per cent. Output of the marine and offshore engineering segment instead recovered from a 9.1 per cent drop in July to grow by 9.1 per cent last month. The two segments are key growth industries that the government is keen to develop further and they combine to another 24.9 per cent of total manufacturing, but are known for their volatility in output.

Also in August, the chemicals cluster’s output grew 2.3 per cent, down from July’s 9.3 per cent, while precision engineering cluster grew 1.9 per cent last month.