Singapore: Manufacturing and electronics PMIs plummet in March
April 4, 2020
At the close of the first quarter, Singapore’s private-sector business conditions deteriorated on the back of a worsening of the Covid-19 pandemic weighing heavily on output and demand levels. The Purchasing Managers’ Index (PMI), produced by the Singapore Institute of Purchasing and Materials Management (SIPMM), showed that both the manufacturing and electronics sectors contracted at the steepest rate in over a decade.
The crucial electronics sector’s PMI fell to the lowest level since the global financial crisis (March: 44.1; February: 47.6) owing to steep drops in output, new exports and new orders. Moreover, the same narrative played out in the manufacturing sector, whose PMI also fell to the lowest level since February 2009 on the heels of contractions in output and demand.
Looking ahead, the outlook remains mired with downside risks and hinges largely on developments surrounding the Covid-19 pandemic, which will continue to disrupt trade and supply chains; the longevity and severity of the health crisis remains uncertain.
Author: Jan Lammersen, Economist