Singapore manufacturing contracts for ninth straight month in March

It was at a slower rate, though.

Singapore factory activity shrank for the ninth consecutive month since June last year, according to the Purchasing Managers’ Index (PMI) for March, factory activity in March contracted for the 9th consecutive month.

However, the PMI posted an improved reading 0f 49.4, reflecting a 0.9 increase from the previous month. This was a result of better readings across major indicators, though most indicators remain in contractionary mode, said the Singapore Institute of Purchasing and Materials Management (SIPMM).

New orders as well as new export orders were higher over the previous month, and factory output registered improved readings. Further, input prices also posted an increase, and manufacturing employment also exhibited an improved reading. Imports, inventory and stocks of finished goods continued to register expansion, though with a slower rate of supplier deliveries.

Meanwhile, the electronics sector PMI showed an improved reading at 19.0, though the sector continued to contract for the 9th consecutive month since June 2015.

Similarly, improvements were recorded in major indicators of new orders and factory output.

Employment in the electronics sector also posted a slower rate of contraction, whereas electronics inventory saw a slower contraction rate on back of the slower supplier deliveries rate.

In spite of the improved reading, employment in the electronics sector shrank again in March, marking the 11th straight month as most manufacturers in the sector struggled to maintain a lean and productive workforce amid the uncertain business landscape.