Singapore factory activity expands yet again in October

The electronics sector grew faster at 50.8.

The October reading of Singapore Purchasing Managers' Index (PMI) recorded a marginal dip of 0.1 point from the previous month to moderate at 50. This is the second reading of expansion after the PMI recorded 14 months of consecutive contractions, data from Singapore Institute of Purchasing & Materials Management show.

A reading of the PMI above 50 indicates that the manufacturing economy is generally expanding and that the economy is generally declining when the reading falls below 50.

The weaker expansion was attributed to slower overall factory output and lower employment, although new orders and new exports posted marginal improvements.

Manufacturing inventory and finished goods recorded a faster rate of expansion, amidst a faster rate of supplier deliveries.

The manufacturing employment index continued to post contraction readings since November 2014.

The input prices index reverted to a contraction after two months of marginal expansion, whilst imports index posted a marginal expansion.

The Electronics Sector PMI recorded an increase of 0.5 point from the previous month to post an expansion reading for the third month at 50.8. The faster rate of expansion was attributed to a continued expansion reading for new orders, new exports and factory output. 

The electronics inventory index reverted to an expansion and the finished goods index posted a faster rate of expansion.

The electronics imports index recorded an expansion for the 7th month at a faster rate.

The input prices index for the electronics sector reverted to a contraction after recording a moderate reading in the previous month.

Electronics employment index posted a contraction for the third month.