The latest PMI readings are a welcome respite for Singapore manufacturers, hit with dampening global demand, high inflation and interest rates. (Photo: straitstimes.com)Singapore (VNA) – Singapore’s Purchasing Managers Index (PMI) inched up 0.2 point in February to 50 after five straight months of contraction, data from the Singapore Institute of Purchasing and Materials Management (SIPMM) showed.
This was attributed to an improvement in new orders, an expansion in factory output and a slower contraction in new exports. These improvements were boosted by China’s reopening.
The electronics sector PMI saw another 0.2 point uptick to a slower rate of contraction at 49.3.
Experts said the sector may see further gradual improvement in the coming months as global demand picks up and China’s reopening accelerates. However, the complicating factor is that US-China relations remain fragile, especially on the semiconductor front.
Sophia Poh, SIPMM vice-president for industry engagement and development, acknowledged that China’s lifting of its strict COVID-19 restrictions has boosted demand and eased the supply situation.
Besides, China’s factory activity expanded at the fastest pace in more than a decade in February after the lifting of the restrictions and the Lunar New Year holiday. China’s reopening boosted production in South-east Asian manufacturing hubs like Vietnam and Thailand, she added.
The electronics industry may see further gradual improvement in the coming months as global demand picks up, but it is too early to tell if the manufacturing sector is on its way to recovery in the context of the global demand continues to falter, high inflation and geopolitical risks remain unabated in global markets, according to experts.
A PMI reading below 50 indicates contraction from the previous month, while one above 50 means growth./.
