Singapore’s manufacturing sector back to contraction territory in March
Manufacturing PMI dipped 0.1 to 49.9 in March.
Singapore saw a contraction in the overall activity of the manufacturing sector after its Purchasing Managers’ Index dipped by 0.1 to 49.9 in March.
Prior to February, Singapore’s manufacturing already recorded five consecutive months of contraction.
“The reason for deterioration was mainly attributed to a return to contraction for new orders (49.9 from 50) and a slightly steeper contraction for new exports (49.7 from 49.8) whilst the output index expanded at a slower pace (50 from 50.1) which more than offset smaller declines in inventory and stocks of finished goods while the supplier deliveries index actually expanded (50.0 from 49.9),” UOB Senior Economist Alvin Liew said in a report.
Meanwhile, the PMI for the electronics sector inched up by 0.1 to 49.4 in March, but was still within contraction territory. This is also the eighth consecutive contraction the sector recorded.
“The improvement was attributed to the slower contraction in the key indexes of new orders (49.5 from 49.4), new exports (49.6 from 49.5), and employment (49.7 from 49.3) and the better expansion in electronics deliveries (50.4 from 50.3), offsetting the steeper falls in electronics inventory (49.4 from 49.5) and electronics output (49.4 from 49.5).”