Singapore: Manufacturing PMI falls to over one-year low in November; electronics PMI dips into contractionary territory

The manufacturing PMI produced by the Singapore Institute of Purchasing and Materials Management (SIPMM) edged down to 51.5 points in November from 51.9 points in October, marking the weakest performance in over one year. Consequently, the index inched closer to the crucial 50-point mark that separates expansion from contraction in Singapore’s manufacturing sector, but nevertheless remained above the threshold for the 27th consecutive month.

The deterioration in business conditions in November came on the back of broad-based declines among the index components. New work orders and output growth both decelerated in November, while hiring activity also slowed. Moreover, new business inflows from abroad fell to a nearly one-and-a-half-year low, demonstrating the impact trade tensions between the U.S. and China had on foreign demand.

Meanwhile, the electronics PMI dropped into contractionary territory in November for the first time since July 2016, declining to 49.9 points from 50.5 points in October, also on broad-based losses.

Singapore Manufacturing Output Forecast

FocusEconomics Consensus Forecast panelists expect manufacturing output to grow 4.1% in 2019, which is down 0.2 percentage points from last month’s forecast, and 4.0% in 2020.