Singapore PMI January 2018

Singapore

Singapore: Manufacturing PMI continues to soften in January

February 5, 2019

The manufacturing PMI produced by the Singapore Institute of Purchasing and Materials Management (SIPMM) fell to 50.7 points in January from 51.1 points in December, the lowest reading since December 2016. The index, nevertheless, remained above the crucial 50-point mark that separates expansion from contraction in Singapore’s manufacturing sector.



The drop in the index was driven by a broad-based slowdown in index components. Expansions in new orders, new exports, employment and factory output all lost momentum in January. Moreover, backlogs of orders continued to contract.



Meanwhile, the electronics PMI ticked down to 49.6 in January from 49.8 in December, the weakest reading since June 2016. There was a synchronized slowdown in Asia’s factory activity last month as Indonesia, Taiwan, South Korea and Japan all recorded softer readings. The U.S.-Sino trade war, slower global growth and weaker global demand for technology and electronics are major headwinds facing Singapore’s manufacturing sector going forward. That said, the manufacturing sector is still seen expanding, albeit at a markedly slower pace than in recent years.

FocusEconomics Consensus Forecast panelists expect manufacturing output to grow 3.7% in 2019, which is down 0.1 percentage points from last month’s forecast, and 4.2% in 2020.


Author:, Economist

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Singapore PMI January 2019

Note: Purchasing Managers’ Index. Readings above 50 points indicate an expansion in the manufacturing sector while readings below 50 points indicate a contraction.
Source: Singapore Institute of Purchasing and Materials Management (SIPMM).


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