Economist at UOB Group Barnabas Gan reviews the latest PMI figures in Singapore for the month of August.
“Singapore’s manufacturing Purchasing Managers’ Index (PMI) reported by SIPMM fell marginally by 0.1 point to 50.9 in August 2021. Despite the decline, it remains in expansionary territory for the 14th straight month.”
“The decline in Singapore’s manufacturing PMI has been in line with how most of Asia had performed in the recent week.”
“Singapore’s decline in overall manufacturing PMI is likely due to a slightly softer external environment, as seen from the slower expansion rates in new orders, new exports and factory output.”
“Barring an exacerbation of vaccine-resistant COVID-19 infections in Singapore, the manufacturing sector is expected to be one of the key pillars of growth for Singapore. Singapore’s export-oriented industries are expected to ride on the winds of the global trade growth, which should subsequently benefit externally-facing sectors such as manufacturing, wholesale trade, and financial services. As such, we expect Singapore’s manufacturing sector to expand by 8.0% in 2021.”