Singapore PMI down 0.3 point to 50.4 in February

It hit the sixth month of decline due to slower growth in new orders, exports, and factory output.

The Singapore Purchasing Manager’s Index (PMI) recorded a further 0.3 point drop from the previous month to a slower expansion at 50.4 in February, according to the Singapore Institute of Purchasing and Materials Management (SIPMM).

The Singapore manufacturing PMI posted its 6th month of decline. The lower reading was attributed to slower growth recorded in the new order, new exports, factory output, inventory and employment level, SIPMM noted.

“A reading of the Singapore 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 explained.

SIPMM added that the input prices index reverted to a contraction after having expanded for 18 consecutive months. The only index that posted improved reading is the supplier deliveries index, whilst the order backlog index continued to contract for the 5th month.

Meanwhile, the electronics sector PMI recorded a dip of 0.1 point from January to record the 4th month of contraction at 49.5, data showed. SIPMM blamed the weak reading to a second-time contraction in new orders, new exports and employment, as well as a third-time contraction in factory output.

On the other hand, the weaker reading was cushioned by the inventory index, which recorded a higher rate of expansion.

“Both the indexes of supplier deliveries and input prices posted expansion readings, whereas the indexes of finished goods, imports, and order backlog recorded contraction readings,” SIPMM noted. “The order backlog index has recorded contraction for the 10th consecutive month.”