Manufacturing PMI hit 50.1 in August

It reflects improvements in the manufacturing and electronics sectors.

Singapore’s manufacturing purchasing managers’ index (PMI) hit a marginal expansion of 50.1 in August, 0.1 point lower than the 50.2 recorded in July, according to data from the Singapore Institute of Purchasing and Materials Management.

This marks the second-straight month of expansion for the manufacturing sector.

Electronics PMI posted a 1.4 points jump from the previous month to grow 50.6, which is the highest recorded reading since September 2018’s 51.4.

The latest results reflect a relatively rosy economic backdrop and point to improvements in the industrial production and electronic exports environment, noted Barnabas Gan, UOB Global Economics & Market Research economist.

However, hiring sentiment continues to remain soft amidst a weak labour market outlook for months ahead. The overall employment index for the manufacturing sector contracted at a faster rate at 48.6, compared to 49.1 in July, marking the seventh consecutive month of decline.

Overall economy PMI measured by HIS Markit also continued to fall in August, suggesting that much of the decline is potentially due to Singapore’s construction and services, as well as retail, sectors.

On the upside, the expansion in the manufacturing and electronic PMIs signals that recovery is taking place, Gan said.