PMI falls to record low at 45.4 in March

Faster contractions in finished goods, imports, input prices, and order backlog dragged it down.

The purchasing managers’ index (PMI) dropped 3.3 points MoM to record a further contraction at 45.4 in March, according to data from the Singapore Institute of Purchasing and Materials Management (SIPMM). 

This is said to be the second month of contraction for the overall manufacturing sector, and is the lowest recorded reading since February 2009 when the reading was at 45. 

The PMI decline was attributed to faster contractions for the key indicators of new orders, new exports, factory output, employment, and supplier deliveries. 

Furthermore, the indexes of finished goods, imports, input prices, and order backlog, also recorded faster contractions, whereas the inventory index posted a slower rate of contraction.

The order backlog index recorded the second month of contraction at 46.7 and this reading is the lowest since October 2011 when the reading was 45.8.

Meanwhile, the electronics sector PMI posted a decline of 3.5 points MoM to a contraction of 44.1 in March, which is also the second month of contraction for the electronics sector. The monthly figure is also the lowest recorded reading since February 2009 when the reading was at 43.8.

The index of electronic factory output is at 40.9, the lowest reading since December 2008 (38.5). The latest electronics sector reading was attributed to faster contractions for the indexes of new orders, new exports, factory output, employment, and supplier deliveries.

In addition, the indexes of finished goods, imports, input prices, and order backlog, also recorded faster contractions, whereas the inventory index posted a slower rate of contraction.