Singapore’s manufacturing output growth likely slows to 19% in December on-year vs November’s +39.8%, according to a Dow Jones poll of 12 economists.

Analysts say industrial production may have peaked, and expect growth to return to more sustainable levels between 8.0% and 10% in 2011. Factory output is tipped to contract 3.2% on-month in December on a seasonally-adjusted basis after a surprise 1.1% expansion in November, according to the poll. 

 

“We are expecting a month-on-month downward correction...due to pharmaceutical output decline and the end of Christmas orders production for the electronics sector,” says Standard Chartered Bank economist Alvin Liew. 

 

The tipped manufacturing slowdown is likely to be a smaller factor than inflation in the Singapore central bank’s decision whether to tighten monetary policy in April, economists say. The data are due 1:00 p.m. Wednesday.