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Singapore’s Growth Slows: How Did the Transportation & Storage, Finance & Insurance, and Accommodation & Food Services Industries Do?

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On 12 August 2014, the Ministry of Trade and Industry (MTI) had released its latest set of Gross Domestic Product (GDP) figures for the second quarter of 2014 for Singapore. Most industries had experienced a slowdown in growth, prompting the MTI to lower Singapore’s GDP Growth forecast to 2.5% this year from 3.5% previously.

Let’s take a closer look at a number of individual industries. You can find a discussion for the Manufacturing, Construction, and Wholesale & Retail industries here.

Transportation & Storage

The Transportation & Storage industry only grew 2% in the second quarter of 2014, compared to 5.5% in the first quarter. There might be some concerns over how this section of Singapore’s economy has contracted over the past two quarters. Shares like Ascendas Real Estate Investment Trust (SGX:A17U) and Mapletree Logistics Trust (SGX:M44U) – both of which own logistics facilities in Singapore – might be affected.

Finance & Insurance

As perhaps a sign of Singapore’s strength as a financial hub in the region, Finance & Insurance escaped relatively unscathed as the industry grew by 5.5% in the second quarter compared to 5.7% in the first. Companies such as DBS Group Holdings Ltd (SGX: D05) and Great Eastern Holdings Limited (SGX: G07) are major players in this space.

Accommodation & Food Services

Lastly, Accomodation & Food Services only grew 0.5% in the second quarter, down from a growth rate of 2.1% in the first quarter. This might be an indication of the health of hotel and restaurant businesses over the short-term and might concern companies such as BreadTalk Group Limited (SGX: 5DA) and Mandarin Oriental International Limited (SGX: M04).

Foolish Summary

It seems that the growth of Singapore’s economy is slowing down. However, such signs might not be obvious from some of the earnings releases of the companies listed in Singapore. What this also means is that, as investors, we should be aware that there are companies which do buck the big-picture trend and that we shouldn’t panic purely because of macro-economic concerns.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Stanley Lim doesn't own any shares of companies mention above.