This morning, I read the top of the news from The Straits Times with the header "Surprise slump in biomedical sector its factory output". The key word here is "surprise" i.e. the experts are not expecting it.
From the report, last month's factory output fell for the first time since June last year and mainly due to the surprise decline in biomedical production (slumped 2.5 per cent as compared to the same period last month while the economists are expecting a growth of 2.4 per cent).
Basing on this surprising news, economists are downgrading the second-quarter GDP growth forecast from 4 per cent to 3.1 per cent. Also, the full-year manufacturing forecast has been downgraded from 5 per cent to 3.5 per cent.
This is just another testament that it is hard to predict accurately, even for the pros, I guess Mr market will go ...
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