Manufacturing PMI dips to its lowest since August 2020 at 50.1

Looking ahead, analysts said the road will be “bumpy” for the manufacturing sector.

The manufacturing sector saw its lowest PMI reading since August 2020 last month at 50.1.

While the March PMI still marked an expansion for the sector, it also represents a decline of 0.1 points from February.

According to OCBC Investment Research, the lower reading was because the underlying gauges were also generally softer in March.

The new orders factory output, for example, stood exactly at a 50 reading, whilst supplier deliveries gauges eased.

On the other hand, the new exports and employment indices picked up speed, and in particular, the input price index hit its highest reading since October 2013 at 51.9.

“This is a potential double whammy as the order book is still healthy, especially the export orders, but costs have escalated, and stocks of finished goods have fallen back into the contraction territory at 49.8,” the analyst explained.

Looking ahead, CBC Investment Research said the road will be “bumpy” for the manufacturing sector.

“While the demand order book remains healthy, nevertheless, Singapore is clearly not immune to the rising pricing pressures and supplier deliveries bottlenecks which appear to be widespread across Asia according to the latest PMI prints, especially with the China Covid-related lockdown and growth slowdown themes, which are also exacerbated by the ongoing geopolitical tensions in Ukraine as well,” the analyst explained.