Singapore: Manufacturing and electronics PMIs edge higher in November
December 4, 2019
Operating conditions in both the manufacturing and the electronics sector deteriorated at a softer pace in November. The Singapore Institute of Purchasing and Materials Management’s (SIPMM) manufacturing Purchasing Managers’ Index (PMI) inched up from 49.6 in October to 49.8 in November. However, the index remained below the neutral 50-threshold that separates contraction from expansion. The uptick in November came on the back of stronger growth in output and inventory buildup; however, new domestic and foreign orders as well as job creation fell, albeit at softer rates. Despite the uptick, anecdotal evidence points to still-suppressed sentiment among goods producers, mainly owing to protracted trade tensions between the United States and China, which remain clouded in uncertainty.
Meanwhile, the institute’s electronics PMI ticked up from 49.3 in October to 49.7 in November. Consequently, the index has remained in contractionary territory for over a year now. The sector’s uptick in November was driven softer drops in new domestic and export orders, output and job creation while inventories rose at an accelerated pace. Stocks of finished goods and suppliers’ delivery times grew at a slower pace.
Author: Jan Lammersen, Economist