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- Singapore: The manufacturing sector remains strong – UOB
Singapore: The manufacturing sector remains strong – UOB
Alvin Liew, Senior Economist at UOB Group, comments on the recently published PMI results in Singapore.
Key Takeaways
“Singapore’s manufacturing Purchasing Managers’ Index (PMI) edged slightly lower by 0.1 point to 50.3 in Jun, the 24th straight month where PMI stayed above the 50.0 mark, indicating an overall expansion in activity. The electronics sector PMI registered a surprise increase of 0.3 point to post a faster rate of expansion at 50.8, the highest level since Jan 2022.”
“Both the headline PMI and electronics PMI recorded faster expansion rates for new orders, new exports, factory output and imports index. It was also noted that their respective input prices index remained on a persistent upward trend while their employment index continued to expand but at a slower pace.”
“We continue to stay positive in our outlook for Singapore’s manufacturing sector (in particular, electronics) as it remains a key economic support pillar for the overall economy and for job creation. That said, we are mindful of the external risks due to the on-going Russia-Ukraine conflict and COVID-19 related supply chain disruptions. We are also keenly monitoring higher commodity prices (especially energy) which have persistently lifted the input prices index, which in turn would further add to inflation risks for the overall economy. In all, while we are cognizant of the attendant external risks and price pressures, the latest PMI outcome does not change our outlook for Singapore’s manufacturing which we expect to grow by an average of 4.5% in 2022.”
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