Singapore PMI shrinks by 0.1 point to 52.9 in April

The growth of new orders and new exports slowed down.

The April reading of the Singapore Purchasing Managers’ Index (PMI) dipped 0.1 point from March to post a slower expansion at 52.9, the Singapore Institute of Purchasing & Materials Management (SIPMM) revealed. A reading above 50 indicates that the manufacturing economy is generally expanding and that the economy is generally declining when the reading falls below 50.

According to an announcement, the PMI has recorded 20th month of consecutive expansion. "This latest PMI reading was mainly attributed to a slower growth in new orders and new exports, and a slightly slower factory output, but was supported by higher inventory and employment levels," SIPMM said.

The inventory index posted the highest reading of 53.0 since July 2014 when the reading was 53.4. The finished goods stocks index posted the highest reading of 52.0 since February 2016 when the reading was the same at 52.0. The other indicators posted faster rates of expansion except for the order backlog, which recorded a slower rate of expansion at 50.7.

Meanwhile, the Electronics Sector PMI recorded a marginal decline of 0.2 point from the previous month to post a slower expansion at 52.2. "The lower reading of the electronics sector was attributed to slower expansion in new orders, new exports, as well as factory output," SIPMM commented.

All other indicators recorded faster rates of expansion. This latest reading indicated that the electronics sector has recorded its 21st month of consecutive expansion. Electronics inventory accumulation of 54.2 is at its highest since April 2011 when the reading was 57.4. The electronics finished goods stock index, which posted a reading of 52.2, was the highest since December 2014 when the reading was 52.3.