Singapore’s manufacturing activity continued its growth trend for the second consecutive month in October, with an even faster pace of expansion. This positive development can be attributed to the increase in new exports, factory output, and employment.
According to the Singapore Institute of Purchasing and Materials Management, the city-state’s Purchasing Managers Index (PMI) rose from 50.1 in September to 50.2 in October. Furthermore, the slowdown in the decline of new orders and input purchases also contributed to the expansion.
It is worth noting that a PMI reading above 50 indicates expansion, while a figure below 50 signals contraction.
Despite the elevated uncertainties driven by China’s recovery, geopolitical tensions, and macroeconomic risks of advanced economies, Stephen Poh, the Executive Director at SIPMM, expressed optimism about the economic outlook going forward into next year. He stated, “The manufacturing sector has started the final quarter of the year on a positive note… Local manufacturers are becoming less pessimistic.”
In terms of the electronics industry, which constitutes about a third of Singapore’s manufacturing activity, the PMI increased slightly from 49.8 in September to 49.9 in October, as reported by SIPMM.