Singapore PMI down 0.2 point to 52.7 in May

The growth of factory output and new orders slowed down.

The Singapore Purchasing Managers’ Index (PMI) in May recorded a further dip of 0.2 point from the previous month to post a slower expansion at 52.7, the Singapore Institute of Purchasing and Materials Management (SIPMM) revealed.

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

The Singapore manufacturing PMI has now recorded 21st month of consecutive expansion. This latest PMI reading was attributed to a slower growth in factory output, as well as slightly slower growth in new orders, new exports, inventory, and employment.

Both the indicators of finished goods and input prices recorded higher readings from the previous month. The stocks of finished goods index recorded the highest reading of 52.3 since February 2011 when the reading was 53.5.

The other indicators posted slower rates of expansion. The order backlog index posted the lowest reading of 50.3 since June last year when the reading recorded a marginal expansion at 50.2.

Meanwhile, the electronics sector PMI edged up 0.1 point marginally from the previous month to record an expansion reading of 52.3. The latest reading of the electronics sector was attributed to a faster expansion in new orders, new exports, and factory output, but was dragged lower by the indicators of inventory and employment.

PMI reading has recorded its 22nd month of consecutive expansion. The electronics order backlog index reverted to a marginal contraction.

"Anecdotal evidence suggests that despite concerns amongst electronics manufacturers about a possible global trade war, several firms are developing their digital capabilities for high-value manufacturing," SIPMM said.