Singapore: Manufacturing sector remains under pressure – UOB
|UOB Group’s Economist Barnabas Gan reviewed the latest PMI figures in Singapore.
Key Quotes
“Singapore’s manufacturing and electronic PMIs reported by SIPMM rose for the second month in June 2020 on the back of Phase Two reopening, albeit still in contraction territory for the fifth consecutive reading.”
“Slower contractions were seen in new orders, new exports, factory output, employment, and supplier deliveries. The sub-50 indices seen in these segments highlights the sustained weak global demand landscape.”
“In another release by IHS Markit, Singapore’s whole economy PMI rebounded to a four-month high of 43.2 in June, up from 27.1 in the previous month. The index however still indicated a contraction, suggesting that the uptick at the introduction of Phase Two could only partially offset the lacklustre economic activities elsewhere.”
“Collectively, the contraction seen in both the IHS Markit and SIPMM PMIs for May 2020 suggests further headwinds against Singapore’s manufacturing environment. Key manufacturing sectors, save for biomedical manufacturing, could remain in the doldrums for the second half of the year COVID-19 wears on.”
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