Chart of the Day: Weak outputs and imports weighed on manufacturing output in May

Both declined by 0.4 points each.

This chart from OCBC Treasury Research showed that Singapore’s manufacturing purchasing managers index (PMI) in May was pulled down six out of eight indicators, led by a lower output (-0.4) and imports (-0.4). Overall, PMI declined 0.2 points but still is in the expansionary phase at 52.7.

Only the stocks of finished goods (0.3) and input prices (0.3) rose, whilst exports (-0.2) and inventory (-0.2) fell.

“Despite the slowdown, the expansionary manufacturing PMI print (>50.0) suggests that whilst some signs of caution can still be felt to-date, the manufacturing momentum remains intact and is likely not facing a sharp moderation,” said OCBC.

The electronics sector PMI, however, paints a rosier picture with exports (+0.4), new orders (+0.4), and output (+0.2) faring relatively better.

OCBC observed that Singapore’s PMI performance is also largely in line with regional manufacturing PMI performance, which was softer-neutral in May.