Singapore: Manufacturing and electronics PMIs show improving business conditions in January
February 4, 2020
Singapore’s private sector started the new year on a positive note, with the Purchasing Managers’ Index (PMI) produced by the Singapore Institute of Purchasing and Materials Management (SIPMM) signaling improving business conditions for both the manufacturing and electronics sectors for the first time in 15 months. However, SIPMM noted that “any optimism may be temporary due to the novel coronavirus outbreak”.
For the second-consecutive month, operating conditions in the manufacturing sector improved on the back of stronger growth in new orders, new exports, production and job creation. The electronics sector, meanwhile, broke a 14-month streak of contraction due to increased new domestic and foreign orders, output and employment.
Looking ahead, although the January data is encouraging, much will depend on progress made in the Sino-American trade dispute. In the short term, moreover, the private sector is likely to be impacted by the outbreak of the coronavirus, which could disrupt regional and global supply chains. However, the outlook should improve later on in H1.
Author: Jan Lammersen, Economist