Singapore electronics PMI contracts for the first time in 2 years amid region-wide slump
SINGAPORE’S manufacturing sentiment fell in August to its lowest point in 2 years, with the Purchasing Managers’ Index (PMI) for the electronics sector clocking the sharpest contraction since the start of the Covid-19 pandemic.
Electronics PMI tumbled 0.9 point to 49.6 in August, entering contraction territory for the first time since July 2020, said the Singapore Institute of Purchasing and Materials Management (SIPMM) on Friday (Sep 2). A reading below 50 on the index indicates contraction from the previous month; one above 50 means growth.
This is also the sharpest monthly drop the sector has recorded since April 2020. The reading was attributed to a contraction in the key indices of new orders, new exports, output and inventory, SIPMM said.
Meanwhile, overall PMI slid 0.1 point to 50 in August, the lowest reading since June 2020. This was due to a slower expansion in the key indices of new orders, new exports and employment, as well as a faster expansion in the supplier deliveries index.