Singapore: Manufacturing PMI decreases unexpectedly in August
September 3, 2013
The manufacturing PMI produced by the Singapore Institute of Purchasing & Materials Management (SIPMM) decreased from 51.8 points in July to 50.5 points in August. The figure was well below the 51.9 points the markets had expected, but is still above the 50-point threshold, which indicates expansion in the manufacturing sector.
The August drop reflected deterioration in six of the nine categories that compose the index, with finished goods and stocks of purchases recording the largest decreases over the previous month.
On the other hand, the all-important electronics sector improved over the previous month according to a separate PMI covering that sector. The index increased to 51.3 points in August, up from the 50.3 points recorded in July.
FocusEconomics Consensus Forecast panelists expect manufacturing output to grow 1.1% in 2013, which is down 0.7 percentage points from last month's forecast. For 2014, the panel expects manufacturing output growth to accelerate to 4.8%.
Author: Dirina Mançellari, Senior Economist