Singapore: Manufacturing and electronics PMIs drop to over-three-year low in September
Singapore’s manufacturing Purchasing Managers’ Index (PMI), produced by the Singapore Institute of Purchasing and Materials Management (SIPMM) dropped from 49.9 in August to 49.5 in September, marking the lowest reading since July 2016. Moreover, the index remained below the 50-threshold that separates contraction from expansion in the manufacturing sector as the industry has been affected by the trade war between the United States and China. The drop in September came on the back of decreasing new orders and output while the fall in employment and new exports quickened.
The electronics PMI also fell, with the index dropping from 49.4 in August in to 49.1 in September. This marked the lowest value since June 2016 and the 11th consecutive month of contracting business conditions. The deterioration in the electronics index was driven by a steeper contraction in new orders, employment and production. The sector is likely to have been affected by the imposition of American tariff hikes on some electronic consumer goods from China, effective 1 September, as Singapore is a key node in the Asian tech supply chain.