PMI slightly rises in August

The electronics sector is expanding at a faster rate.

Singapore’s Purchasing Managers’ Index (PMI) in August edged up 0.1 point from the previous month to post a moderation reading of 50.0, according to the Singapore Institute of Purchasing and Materials Management (SIPMM).

This marks a return to moderate expansion after a previous contraction.

According to SIPMM, the expansion can be attributed to faster expansion rates in new orders, new exports, and purchase input indexes. The slower contraction rates in factory output and employment indexes also contributed to the expansion.  

Faster expansion rates were also recorded for the finished goods, imports, and supplier deliveries indexes.

“The August PMI readings augur well for the manufacturing sector as it reverted to a moderate expansion, with the electronics sector expanding at a faster rate. However, uncertain global trade policy and tariffs may still impact local manufacturers, and especially the sectoral tariffs that could be imposed on the electronics sector,” Stephen Poh, executive director of SIPMM, said.

Data from SIPMM also showed that the future business index posted a faster contraction rate, while the input prices index reverted to an expansion.

The order backlog index posted a slower expansion rate, having recorded expansion rates for 27 consecutive months.