Here's proof that the upswing in Singapore's electronics cluster is coming to an end

Expect further dip in electronics PMI, says analyst.

According to DBS, the upswing in the electronics cluster may be coming to an end. Yet, market seems to think that there will be a rebound in the electronics cluster. Consensus is factoring in higher electronics PMI of 51.6, from 51.2 in the previous month.

Here's more:

Note the electronics PMI has eased by 0.8pt to 51.2 in the February. New orders, production and inventory sub-indexes have all moderated, suggesting a downward adjustment in the production output level. Moreover, this corroborates with the recent easing back to parity in the SEMI book-to-bill ratio as well as the tapering in the global semiconductor sale growth.

Essentially, we believe manufacturers are attempting to unwind on their production levels, after having ramped up output over the last 6-9 month. As it is, there have been a built up in inventory stock and with that, expect further dip in the electronics PMI ahead as manufacturers make adjustment to their production cycle.