Singapore Manufacturing Activity Continues to Expand, But at Slower Pace
By Amanda Lee
SINGAPORE--A key gauge of Singapore's manufacturing activity stretched its run of growth to an eight consecutive month, but lost pace, adding to signs of a choppy recovery so far this year.
The city-state's purchasing managers index fell to 50.5 for April from 50.7 in March, the Singapore Institute of Purchasing and Materials Management said Thursday. A reading above the neutral 50 mark indicates expansion, while one below signals contraction.
While the sector staying in expansion mode at the start of the second quarter is "heartening," global uncertainties arising from geopolitical conflicts and the effects of inflationary pressures weighed on manufacturing activity, said SIPMM executive director Stephen Poh.
A breakdown of the data showed slowdowns in the subindexes for new orders, new exports, factory output and input purchases. That drove the decline in the headline reading though there was a bright spot in the employment index, which rose to its highest since December last year.
The PMI for electronics, which accounts for about a third of Singapore's manufacturing activity, edged up to 50.9 in April from 50.8 in March, marking its sixth month of expansion in a row and reaching its highest level in at least a year.
The data comes after data from the Economic Development Board last week showed that Singapore's manufacturing swung into contraction in March.
The export-oriented economy is facing similar pressures as other countries in the region but could also stand to gain from the upswing in global demand for electronics, which is being aided by the buzz around artificial intelligence.
Data from S&P Global earlier suggested that Southeast Asian manufacturers continue to face uncertainty around muted global demand, with confidence in the sector's outlook in many areas dimming and some companies cutting staff.
New orders rose for the second straight month in April, according to the headline S&P Global Asean manufacturing PMI, but that was likely primarily driven by domestic demand as the downturn in export sales extended to a 23rd month.
"In terms of output, while Asean manufacturers signalled solid growth in production, the upturn moderated from the ten-month high recorded in March," S&P said.
--Fabiana Negrin Ochoa contributed to this report
Write to Amanda Lee at amanda.lee@wsj.com
(END) Dow Jones Newswires
May 02, 2024 09:14 ET (13:14 GMT)
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