Singapore may reduce 2Q GDP estimate to +18.7% on year vs +19.3% previously reported, cut estimate for adjusted, annualised GDP to +24.1% on quarter vs +26% reported on pullback in manufacturing, especially pharmaceuticals, DBS says in note.

“Volatility is the hallmark of the pharmaceutical industry due to the nature of its production process. Having ramped up production since the start of the year, it should not come as a surprise to see some more producers shutting down production in June to do the necessary maintenance and sterilization before embarking on the next batch of drugs,” says DBS.

Bank adds possible downward adjustment unlikely to raise double dip recession alarm, confirms view of slower second half, economy on track to grow 15% on year in 2010. Revised 2Q GDP data due 8 a.m. on Aug 10.