April manufacturing PMI rises to 50.7 on stronger orders and output

It is the highest reading since February last year.

Manufacturing activity expanded for the ninth consecutive month in April, with the Purchasing Managers’ Index (PMI) at 50.7, up 0.2 points from March.

The reading is the highest since February last year, according to the Singapore Institute of Purchasing and Materials Management (SIPMM).

The increase was attributed to stronger expansion in new orders, new exports, factory output, input purchases, and employment.

SIPMM executive director Stephen Poh said the latest PMI readings reflect support from the global artificial intelligence cycle, particularly in the electronics and semiconductor segments, as well as contributions from precision and transport engineering sectors.

”However, severe supply chain constraints, arising from the Middle East maritime blockades and helium shortages, continue to inflate costs and prolong delivery lead times,” Poh added.

The supplier deliveries index contracted at a faster pace for the fourth consecutive month, indicating longer lead times.

Meanwhile, faster expansion was recorded in finished goods, imports, input prices, order backlog, and future business.

The order backlog index grew for the fourth straight month, whilst the future business index remained in expansion for the sixth consecutive month.