Singapore: Manufacturing and electronics PMIs both rise in April
The Purchasing Managers’ Indices (PMIs)—produced by the Singapore Institute of Purchasing and Materials Management (SIPMM)—for both the manufacturing and electronics sectors rose in April, and thus moved further into expansionary territory as the two sectors continued to gradually recover after falling to the lowest levels in over a decade in April 2020 due to the coronavirus pandemic.
The manufacturing PMI rose slightly to 50.9 in April—the highest reading in 28 months—from 50.8 in March, thus moving further above the 50-point threshold that separates expansion from contraction in the sector and marking the tenth consecutive month of expansion in the manufacturing sector. The higher reading was attributed to faster growth in new orders, exports and employment.
Likewise, the electronics PMI increased marginally to 50.7 points in April from 50.6 in March, and thus clocked the ninth consecutive month of expansion for the sector.
Regarding the manufacturing sector, Barnabas Gan, economist at United Overseas Bank, commented:
“The sustained expansion in Singapore’s PMI is in tandem with the growth in industrial production. Singapore’s industrial production surprised market estimates with a 7.6% y/y surge in March 2021, underpinned by electronic output which expanded 33.7% in March 2021, the fastest growth in three months. We keep our industrial production growth outlook of 5.5% in 2021.”