Singapore’s exports-led economy likely to level off after strong growth so far in 2010, may continue expanding next year at more modest pace, says David Cohen of Action Economics after data show October manufacturing output +31% vs upwardly revised +26.8% September, +26.5% Dow Jones poll estimate.

October data got unexpected boost from volatile pharmaceuticals sector.

“We may no longer be getting the kick from the inventory cycle and there has been some deceleration from the sharp rebound seen in the middle of the year, but there is general optimism that Singapore will continue to expand next year,” Cohen says.

Adds, pharmaceuticals output likely to remain volatile, but with positive trend as companies expand. October pharmaceuticals output +121.4%, data show. Also, inflation likely to determine Singapore central bank’s policy stance in April, Cohen says.