Sector performance
The manufacturing industry expanded by 3.2% year-on-year in the fourth quarter of 2023, reversing the contraction of 4.7% in the previous quarter.
“Growth in this sector is due to production expansion in all clusters except the Precision Engineering cluster,” MTI said.
On a seasonally adjusted basis, the manufacturing sector grew 9.0% in the fourth quarter, accelerating from 0.3% growth in the third quarter.
Meanwhile, the construction sector grew by 9.1% year-on-year in the fourth quarter, exceeding the 6.2% growth in the previous quarter.
Both public and private sector construction output increased in the quarter, MTI said.
On a seasonally adjusted quarter-on-quarter basis, the pace of growth in the construction sector rose to 4.3% in the fourth quarter from 0.8% in the third quarter.
Within the service sector, the wholesale/retail trade and transportation/storage sectors as a whole grew by 1.5% year-on-year in the fourth quarter, extending the previous quarter’s 1.3% growth.
All sectors within the group recorded expansion.
“Growth in wholesale and retail trade was supported by both wholesale and retail trade activities. Meanwhile, expansion in the transport and storage sector was partially driven by the air transport sector, with air passenger handling at Changi Airport “The growth was strong on the back of a continued recovery in numbers,” MTI said.
On a seasonally adjusted, quarter-over-quarter basis, the wholesale, retail, transportation and storage sector overall contracted by 1.4% in the fourth quarter, down from a 0.6% increase in the previous quarter.
The sector group, comprising Information and Communications, Finance, Insurance and Professional Services, grew by 3.9% year-on-year in the fourth quarter, further expanding on the 2.5% growth in the previous quarter.
All divisions within the group expanded during the quarter.
According to MTI, growth in the information and communications sector was driven by the IT and information services sector, while growth in the professional services sector was primarily driven by other professional, scientific and technical services sectors.
Growth in the finance and insurance sector was primarily supported by activities supporting financial services, such as payment processing activities.
On a seasonally adjusted sequential basis, each sector within the group grew by a combined 2.5 percent in the fourth quarter, outpacing the 1.6 percent growth in the third quarter.
The remaining services sector, which includes accommodation and food services, real estate, management and support services, and other services, grew 2.0% year over year in the fourth quarter, slowing from 3.9% growth in the previous quarter. . previous quarter.
Within the Group, the Accommodation, Real Estate and Other Services sectors recorded expansion during the quarter.
“In particular, the accommodation and other services sector continued to expand as tourist numbers continued to recover,” MTI said.
On a seasonally adjusted quarter-on-quarter basis, each division within the group contracted by a combined 0.7% in the fourth quarter, reversing the 0.7% expansion seen in the previous quarter.
Preliminary GDP figures for the fourth quarter and full year of 2023 will be released in the Singapore Economic Survey in February 2024.