Manufacturing PMI falls to 51.9 in October

The factory output index is at its lowest since July 2017.

Singapore’s manufacturing purchasing managers’ Index (PMI) continued to soften after edging down 0.5 point to settle at 51.9 in October, according to the Singapore Institute of Purchasing & Materials Management (SIPMM). 

The lower monthly reading was due to the slower pace of growth in key indicators of new orders, new exports, factory output, inventory and employment level.

As the reading of the PMI above 50 indicates that the manufacturing economy is expanding whilst that of below 50 indicates a declining performance, the latest headline figure represents the 26th month of consecutive expansion in the manufacturing economy even as most sub-indices fell.

The latest factory output index of 52.6 is the lowest reading since July 2017. Imports index also slowed to 51.1. The indexes of both the finished goods and input prices both expanded at lower rates, whereas the order backlog index has reverted to a contraction.

On the other hand, the electronic sector PMI dropped by 0.9 point to 50.5 which marks its lowest reading since November 2016. Although the supplier deliveries index picked up, the indexes of finished goods, imports, and input prices recorded lower rates of expansion.

However, even with the order backlog index contracting for the 6th month, the electronics sector reading has now recorded its 27th month of consecutive expansion.