Singapore’s manufacturing sector expanded for a 15th consecutive month in October, but at a slower pace, with the purchasing managers’ index (PMI) easing 0.3 point to 51.4, according to data from the Singapore Institute of Purchasing and Materials Management (SIPMM) that was released on Monday (Nov 2).
The reading compares with 51.7 in September. A PMI above 50 indicates expansion, while one below 50 signals contraction.
Electronics still expanding
The electronics PMI fell 0.4 point to 52.5 from 52.9, pointing to continued but slower growth in the segment. Electronics accounts for more than a third of total manufacturing output, according to a report by FX.co, which said the sector remains supported by artificial intelligence-related demand.
New export orders for electronics rose to 53.2, the highest level since May 2018, the same report said.
Sub-indices mostly softer
Across the wider manufacturing sector, new orders, factory output, input inventories and employment all eased in October, according to FX.co. Imports and order backlogs kept growing, though more slowly, while new export orders and input prices picked up slightly. Finished goods inventories fell at a more gradual rate, and supplier delivery times shortened significantly.
Stephen Poh, executive director of SIPMM, said the latest figures should be seen in the context of a sector “cooling from a high base, not losing momentum”.
What’s next
Economists expect manufacturing growth to stay resilient, backed by sustained demand for AI-related electronics, according to the report carried by Red Hot Singapore. The FX.co report flagged that renewed shipping disruptions in the Middle East could still weigh on production in the months ahead.
