Singapore: Manufacturing and electronics PMIs worsen marginally in June
July 4, 2019
The manufacturing PMI produced by the Singapore Institute of Purchasing and Materials Management (SIPMM) ticked down to 49.6 points in June from 49.9 in May, posting the worst reading since July 2016. As a result, the index remained below the crucial 50-point mark that separates expansion from contraction in Singapore’s manufacturing sector.
The deterioration in manufacturing activity was driven by declines in new orders, factory output and employment. Moreover, the expansion in new export orders were softer in June compared to the month prior. On the price front, input price inflation picked up slightly.
The electronics PMI also decreased (June: 49.2; May 49.4), marking the eighth consecutive month below the 50.0 mark. Manufacturing activity was subdued across Asia in June, as China’s manufacturing PMI fell into contractionary territory and the ASEAN PMI also declined in the same month. Singapore’s manufacturing and export-driven economy depends heavily on the external sector, which is showing signs of weakness. The U.S.-China trade war and a global slowdown in demand for tech are likely chiefly behind Singapore’s reduction in factory activity.
Author: Steven Burke, Economist