Singapore: Manufacturing PMI dips to an over one-year low in October, weighed on by Sino-American trade tensions
November 2, 2018
The manufacturing PMI produced by the Singapore Institute of Purchasing and Materials Management (SIPMM) ticked down to 51.9 points in October from 52.4 in September, which was the weakest print since August 2017. Thus, the index inched closer to the crucial 50-point mark that separates expansion from contraction in Singapore’s manufacturing sector, but represented the 26th consecutive month of expansion nevertheless.
October’s decline was due to weakness across-the-board, with new business and output growth slowing to over one-year lows. Manufacturing conditions have been negatively impacted by spillovers from the trade war between the U.S. and China, which is dragging down demand from China and other regional trading partners. Consequently, new export orders also eased, and employment ticked down in October.
Meanwhile, the electronics PMI fell to a near two-year low of 50.5 in October (September: 51.4), also on broad-based losses.
Singapore Manufacturing Output Forecast
FocusEconomics Consensus Forecast panelists expect manufacturing output to grow 4.3% in 2019, which is up 0.7 percentage points from last month’s forecast, and 3.2% in 2020.
Author: Lindsey Ice, Economist