As Singapore’s manufacturing slowdown continued in the second quarter this year, its key sectors of construction and services took a hit as well, surprising economists, who warned of further spillovers. MTI advance estimates showed yesterday that manufacturing was the main drag on overall economic growth. It contracted for the second straight quarter by 3.8 per cent year on year, extending its 0.4 per cent decline in the first three months. Overall economic growth was 0.1 per cent from a year ago, a far cry from 1.1 per cent in the first quarter. Meanwhile, the construction sector shrank 7.6 per cent from the last quarter and services producing industries fell by 1.5 per cent, though both grew compared to last year. Construction also faces the risk of more housing market cooling measures ahead, said Barclays regional economist Brian Tan, especially if private residential property prices keep rising in the third quarter. But DPM Heng Swee Keat maintained that sectors such as construction, as well as information and communications, remain areas of strength.... Continue Reading