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Singapore PMI May 2021

Singapore: Manufacturing and electronics PMIs inch lower in May

The Purchasing Managers’ Indices (PMIs)—produced by the Singapore Institute of Purchasing and Materials Management (SIPMM)—for both the manufacturing and electronics sectors fell in May but nevertheless remained within expansionary territory as the two sectors continue to gradually recover from last year’s pandemic-induced downturn.

The manufacturing PMI dipped slightly to 50.7 in May from 50.9 in April—which had marked the highest reading in 28 months—thus moving closer to the 50-point threshold that separates expansion from contraction in the sector and marking the eleventh consecutive month of expansion in the manufacturing sector. The lower reading was attributed to slower growth in new orders, exports and employment as tighter restrictions implemented in mid-May weighed on activity.

Likewise, the electronics PMI decreased to 50.4 points in May from 50.7 in April, and thus clocked the tenth consecutive month of expansion for the sector.

Regarding the manufacturing sector, Barnabas Gan, economist at United Overseas Bank, commented:

“Barring an exacerbation of Covid-19 infections in Singapore, the manufacturing sector is expected to be one of the key pillars of growth for Singapore. Singapore’s export-oriented industries are expected to ride on the winds of the global trade growth, which should subsequently benefit externally-facing sectors such as manufacturing, wholesale & retail trade, and financial services. As such, we expect Singapore’s manufacturing sector to expand by 5.5% in 2021.”

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