Singapore economy grew 2.4% in Q2 amid slowdown in all sectors

SINGAPORE - A broad slowdown across sectors dragged down second-quarter economic growth.

The economy expanded 2.4 per cent in the three months to June compared with the same period last year, the Ministry of Trade and Industry said on Tuesday.

This is slightly higher than the initial estimate of 2.1 per cent growth released last month, but down from 4.8 per cent growth in the first three months of the year.

The manufacturing sector grew 1.5 per cent in the second quarter over last year, a "sharp slowdown" from 9.9 per cent expansion in the preceding quarter, the ministry said.

This was largely due to a dip in electronics and transport engineering output, it added.

The construction sector expanded 4.4 per cent from last year, down from 6.4 per cent growth in the previous quarter.

The slowdown was driven by a fall in private construction activities amid a tepid property market.

Output of services segments, such as wholesale and retail trade and transportation and storage, also grew more slowly.

The services sector expanded 2.6 per cent in the second quarter from a year ago, easing from a 3.9 per cent gain in the first quarter.

While global growth in the first three months of the year turned out slower than expected, recent data suggests that the world economy is recovering modestly, the ministry said.

Still, risks remain - including the potential escalation of ongoing conflict in oil-producing regions, and the impact of tighter regulations in China's shadow banking sector, it added.

The ministry has narrowed its growth forecast for 2014 to 2.5 to 3.5 per cent, from a previous estimate of 2 to 4 per cent.