Based on advance estimates , the Singapore economy grew by 0.1 per cent on a year-on-year basis in the third quarter of 2019, the same pace of growth as in the previous quarter. On a quarter-on-quarter seasonally adjusted annualised basis, the economy expanded by 0.6 per cent, a turnaround from the 2.7 per cent contraction in the preceding quarter.
The manufacturing sector contracted by 3.5 per cent on a year-on-year basis in the third quarter, extending the 3.3 per cent decline in the previous quarter. The contraction was due to output declines in the electronics, precision engineering and transport engineering clusters, which more than offset output expansions in the chemicals, biomedical manufacturing and general manufacturing clusters. On a quarter-on-quarter seasonally-adjusted annualised basis, the manufacturing sector shrank by 0.4 per cent, moderating from the 4.2 per cent contraction in the preceding quarter.
The construction sector grew by 2.7 per cent on a year-on-year basis in the third quarter, extending the 2.8 per cent expansion in the previous quarter. Growth in the sector was supported by a pickup in both public and private sector construction activities. On a quarter-on-quarter seasonally-adjusted annualised basis, the sector contracted by 1.1 per cent, a slower pace of decline as compared to the 5.3 per cent contraction in the second quarter.
The services producing industries expanded by 0.9 per cent on a year-on-year basis in the third quarter, following the 1.1 per cent growth in the previous quarter. Growth during the quarter was primarily supported by the finance & insurance sector, the other services industries and the business services sector. On the other hand, trade-related services sectors such as wholesale trade were weighed down by weak external demand, as well as negative spillovers from the downturn in the electronics and precision engineering clusters. On a quarter-on-quarter seasonally-adjusted annualised basis, the services producing industries grew by 0.7 per cent, a reversal from the 1.4 per cent decline in the preceding quarter.
MTI will release the preliminary GDP estimates for the third quarter, including performance by sectors, sources of growth, inflation, employment and productivity, in its Economic Survey of Singapore in November 2019.
