Singapore manufacturing PMI declines for 13th consecutive month in July

Singapore’s manufacturing sector continued to be in red during the month of July, with the Purchasing Managers’ Index (PMI) declining for the 13th consecutive month in July, re-confirming that the country’s manufacturing sector has not revived yet.

Singapore’s overall manufacturing PMI reported a decline of 0.3 point to 49.3 in the month. Perhaps the only bright spark is the uptick 0.7 point in electronics PMI. However, that index remains stuck in contraction territory and the improvement may not be sustainable.

Amongst the sub-indexes, the outcome has been mixed. But key new orders (including export orders) and production indexes have remained below the crucial 50 level. Signs of a more sustained recovery remain elusive, DBS reported.

Further, manufacturers typically will ramp up their production in the third quarter ahead of the year-end festive season demand. Given that the PMIs are not seasonally adjusted, the improvement could be nothing more than a seasonal effect.

Meanwhile, even if the indexes pick up in the coming months due to the festive season demand, the key point is that this year’s orders could be fewer than last year’s. So, without a sustained improvement in global demand, it is still a bleak outlook for the manufacturing sector after all, the report added.