Singapore: Manufacturing and electronics PMIs in expansionary territory in August
September 4, 2020
The Purchasing Managers’ Indices (PMIs)—produced by the Singapore Institute of Purchasing and Materials Management (SIPMM)—for the manufacturing and electronics sectors had divergent months in August, but both were in expansionary territory as they continued to recover after falling to the lowest levels in over a decade in April in the face of the coronavirus pandemic.
The manufacturing PMI inched down marginally to 50.1 in August points from 50.2 in July, thus remaining just above the 50-point threshold that separates expansion from contraction in the sector. August’s drop was attributed to slower rates of expansion in both new exports and inventory, although new orders and factory output improved in the month.
The electronics PMI increased to 50.6 points in August from 49.2 in July, the highest level recorded since September 2018. Expanding new order, exports and factory output drove the reading higher, while a steeper decline in employment softened the overall rise somewhat.
Author: Stephen Vogado, Economist