Singapore: Manufacturing and electronics PMIs edge higher in December
Business conditions in Singapore’s private-sector economy showed signs of improvement in December. The Singapore Institute of Purchasing and Materials Management’s (SIPMM) manufacturing Purchasing Managers’ Index (PMI) rose to 50.1 in December from 49.8 in the prior month. Consequently, the index moved into expansionary territory for the first time in eight months as “the worst may be over for a sector that had taken a beating from the US-China trade war.” Furthermore, the uptick in the index came on the back of rising new domestic and export orders and job creation while production growth and inventories also supported the reading.
Meanwhile, the institute’s electronics PMI signaled a marginal deterioration in operating conditions as the index came in at 49.9, up from 49.7 in November and marking the best reading in over a year.
External headwinds emanating from the protracted trade spat remains a key downside risk to both the manufacturing and electronics sector going forward; however, the United States and China are expected to sign a “phase one” deal on 15 January.