Singapore: Manufacturing and electronics PMIs contract in May
June 4, 2019
The manufacturing PMI produced by the Singapore Institute of Purchasing and Materials Management (SIPMM) ticked down to 49.9 points in May from 50.3 in April, registering the worst reading since August 2016. Furthermore, the index fell below the crucial 50-point mark that separates expansion from contraction in Singapore’s manufacturing sector.
The deterioration in manufacturing activity was driven by a broad-based slowdown in the index components: Expansions in new orders, new exports, employment and factory output were softer in May compared to the month prior. On the price front, input prices increased in May.
The electronics PMI also decreased (May: 49.4; April 49.5), marking the seventh consecutive monthly contraction. Weak Chinese import demand and a global slowdown in demand for technology have hampered the PMI in recent quarters. Moreover, if further U.S. tariffs on Chinese goods go into effect, this could disrupt global supply chains and dampen prospects of a speedy recovery in demand for Singaporean manufactured goods.
Author: Steven Burke, Economist