Singapore: Manufacturing and electronics PMIs continues to point to contraction despite slight increase in July
August 3, 2019
The manufacturing PMI produced by the Singapore Institute of Purchasing and Materials Management (SIPMM) inched up to 49.8 points in July from 49.6 in June. However, the index remained below the crucial 50-point mark that separates expansion from contraction in Singapore’s manufacturing sector.
The slight uptick in the index was driven by marginal expansions in new orders and production, while employment levels declined at a softer pace in July compared to the month prior. On the price front, input price inflation picked up in July.
The electronics PMI was relatively stable (July: 49.3; June: 49.2), marking the ninth consecutive month below the 50.0 mark. Subdued manufacturing activity in Singapore can be attributed mainly to trade disputes and weaker global demand for technology. Trump’s decision to ramp up tariffs on USD 300 billion of Chinese products in early August and recent trade rifts between Japan and Korea will likely further dampen demand for Singaporean manufactured goods in the months ahead.
Author: Steven Burke, Economist