The Straits Times
Published on Sep 27, 2012

Manufacturing falls, recession fears rise


Manufacturing output dropped last month - confounding the experts and leaving the country facing the prospect of another recession.

The poor numbers sent the Singdollar down against the greenback, hit shares and raised the prospect that the Monetary Authority of Singapore (MAS) will have to adjust its currency policy next month.

Market economists were stunned by yesterday's number.

Many had tipped that industrial production had expanded by 1 per cent in August but output slumped 2.3 per cent - reversing the 2.5 per cent growth in July.