Singapore’s manufacturing sector still in the red for 4th straight month

Manufacturing PMI remains stuck in contraction territory for October despite climbing to 49.5.

Although the figure represents a 1.2 point improvement over September’s PMI, the statistics for new orders (48.2) and new export orders at 48.2 and 46.8, respectively, are signs that the manufacturing sector remained weak.

The electronics PMI offers some relief for businesses grappling with economic uncertainty as the sector recovered by 4.9 points back to expansion territory of 52.1.

The boost came from a first-time expansion in new orders (51.7) and export orders (50.8). 

In a statement, OCBC Bank said the tentative improvement in Singapore’s manufacturing/electronics PMI can be seen more as an “[attempt] to base-build rather than [signal] a strong recovery.”

The bank noted that “mixed signals” abound in other Asian countries’ PMI, with Taiwan’s PMI slipping further from 44.5 to 43.7 in Oct, whereas South Korea’s PMI improving slightly from 47.5 to 48.0 for the same month.

China’s manufacturing PMI, meanwhile, vary from different sources. HSBC’s gauge pegged the recovery from 49.9 to 51.0 while the official gauge recorded a decline from 51.2 to 50.4.