Electronics sector PMI ricochets to expansion in August

After being stuck in the doldrums for 13 months.

Even with the manufacturing being beleaguered to contraction for the 14th straight month in August, its electronics segment managed to bounce back from the red, recording a marginal expansion of 50.2.

According to the latest report by the Singapore Institute of Purchasing and Materials Management (SIPMM), the comeback came about after the sector recorded contraction readings for 13 months.

"The electronics expansion reading was attributed to new expansion readings recorded in new orders, new exports, and factory output," the report noted.

The electronics inventory index continued to record expansion for the third month, while the electronics imports index recorded expansion for the fifth month.

However, input prices has recorded contraction readings for the 15th month.

The August reading of the Singapore Purchasing Managers’ Index (PMI) posted a slower contraction rate of 0.5 point from the previous month at 49.8.

"The improvement in reading was due to higher new orders and new exports, as well as higher factory output and employment," the report said.

Both manufacturing inventory and finished goods recorded a slower rate of expansion, with imports index at a lagging rate of expansion.