GROWTH IN THE CONSTRUCTION SECTOR IS ACCELERATING

The manufacturing sector grew 1.5% year-on-year in the third quarter of 2022, slower than the 5.7% growth in the previous quarter.

Growth in the quarter was supported by production expansion in the transportation engineering, common manufacturing and precision engineering clusters, with the exception of the electronics and chemical substances.

The construction sector grew 7.8% year-on-year in the third quarter, accelerating from 4.8% growth in the previous quarter.

Both private and non-private building production recovered in the third quarter, partly supported by the easing of border restrictions on migrant workers entering Singapore.

In absolute terms, the value added of the development sector remained 18% below pre-pandemic ranges.

Among the supplier sectors, the wholesale and retail trade as well as the transportation and storage sectors collectively rose 6.2% year-on-year in the third quarter.

All of the group’s sectors recorded growth, MTI said.

Growth in the retail and transportation and warehousing sectors was halved from a weak base last year as home and travel restrictions impacted stocks in those sectors.

The group of sectors comprising information and communications, finance and insurance {and professional suppliers} rose 4.0% year-on-year in the third quarter.

All sectors in this group showed growth during the quarter.

The remaining group of provider sectors – accommodation and food service providers, real estate, administrative and support providers and various provider sectors – grew 9.2% year-on-year in the third quarter, faster than growth 7.6% in the previous quarter. .

Most of the group’s sectors expanded during the quarter, with stocks in these sectors continuing to be supported by the lifting of national and border restrictions.

Growth in the meal supplier sector was supported by the COVID-19 restrictions which had dampened the exercise in the sector in the third quarter of last year.

Despite Friday’s “strong” GDP report, ING’s chief economist Nicholas Mapa said he expects Singapore’s growth to slow in the fourth quarter, with indicators pointing to even higher inflation coupled with a slowdown in international trade in the face of fears of recession.

Echoing this, OCBC Chief Economist Selena Ling mentioned that the growth prognosis is for “below-trend growth” in 2023.

“Notably, talk of slowing economic activity due to synchronized tightening of monetary policy globally will intensify and growth in our major trading partners will slow to below trend but remain positive, suggests that outlook for Singapore’s manufacturing industry and some trade-related sectors has dimmed,” she wrote in an assessment.

Mitigating elements, she added, are the continued resilience of domestically-focused and travel-related sectors, underpinned by strong family balance sheets and a healthy domestic labor market that is expected to see sustained wage growth.