By Singapore’s manufacturing sector saw a promising turn in September, with key indicators pointing towards expansion. The Singapore Institute of Purchasing and Materials Management reported that the city-state’s purchasing managers index (PMI) rose to 50.1 in September, up from 49.9 in August. This marks a notable shift after six consecutive months of contractionary readings.
The improvement in the PMI was driven by a slower pace of decline in new orders and inventory, alongside expansions in new exports, employment, and factory output. The February PMI reading was at a neutral level of 50, indicating no expansion or contraction. A PMI reading above 50 now signifies growth.
Stephen Poh, the executive director at SIPMM, emphasized the resilience of Singapore’s manufacturing sector despite various challenges impacting external demand and ongoing geopolitical risks around the world. This positive trend is a testament to the sector’s ability to withstand adversity.
However, the PMI for the electronics segment, which accounts for approximately one-third of Singapore’s manufacturing output, remained in contraction territory for the 14th consecutive month. In September, the PMI for electronics improved slightly to 49.8 from 49.5 in August, hinting at potential recovery on the horizon.
Overall, this latest data indicates the strength and adaptability of Singapore’s manufacturing sector. Despite headwinds in certain areas, the industry’s ability to expand amidst adversity reflects its resilience and potential for future growth.
Comments