The reading was pulled down by the weaker electronics manufacturing sector.
The February reading of the Singapore Purchasing Managers’ Index (PMI) slipped 0.4 point to a slower expansion at 52.7. According to the Singapore Institute of Purchasing and Materials Management (SIPMM), this latest reading was dragged lower by the electronics manufacturing sector on the back of the moderating non-electronics sectors.
A reading of the Singapore Purchasing Managers’ Index (PMI) above 50 indicates that the manufacturing economy is generally expanding and that the economy is generally declining when the reading falls below 50.
SIPMM noted that the lower reading was mainly attributed to a slower growth in factory output. “The other indicators that recorded slower expansions include new orders, new exports, imports, employment, and order backlog. The indicators that recorded faster rate of expansions are inventory, stocks of finished goods, and input prices. The supplier deliveries index reverted to a marginal expansion after contracting for 4 consecutive months. Despite the lower reading, the Singapore manufacturing PMI has now recorded its 18th month of consecutive expansion.”
The institute also noted that the Electronics Sector PMI recorded a decline of 0.8 point from the previous month to post a slower expansion at 52.1. “This is the lowest reading in eight months, when it posted a similar reading in June last year. The lower reading was mainly due to slower growth in both factory output and new orders,” it added.
Slower expansions were also recorded in imports, input prices, employment, and new exports. The electronics inventory, finished goods stocks, and electronics deliveries recorded faster growth rates, whereas electronics order backlog contracted for the second month. Nevertheless, the electronics sector has now recorded its 19th month of consecutive expansion, SIPMM said.
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