Singapore’s manufacturing falls to lowest level since 2009
Singapore’s Purchasing Managers' Index (PMI) declined 3.3 points to 45.4 in March, the lowest level since 2009, said the Singapore Institute of Purchasing and Materials Management (SIPMM).
SINGAPORE, VNA - Singapore’s Purchasing Managers' Index (PMI) declined 3.3 points to 45.4 in March, the lowest level since 2009, said the Singapore Institute of Purchasing and Materials Management (SIPMM).
It was the second contraction in a row and the lowest reading since February 2009 when the index was at 45 points, SIPMM said in a statement on April 3.
The electronics sector’s PMI fell 3.5 points from February to 44.1, which was also the lowest reading since February 2009 and the second month of contraction. The electronic factory output index slipped to 40.9, its lowest point since December 2008.
The March PMI data for both overall manufacturing and electronics showed faster contractions for key indicators including new orders, new exports, factory output, employment, and supplier deliveries, SIPMM said.
The Singapore PMI report comes after advance GDP growth estimates show that the economy may have shrunk 2.2 percent year on year in the first three months of 2020 - the biggest contraction since 2009.
The first quarter slide in growth prompted the Ministry of Trade and Industry to cut its full-year GDP growth forecast to -4.0 to -1.0 percent, from an earlier downgraded estimate of -0.5 to 1.5 percent.
Ms Sophia Poh, SIPMM's vice-president for industry engagement and development, said the COVID-19 pandemic has greatly impacted the manufacturing sector as companies struggle to contain financial losses from sharp revenue reductions.
Singapore PMI is in line with reports from around the region this week showing almost all purchasing managers indexes falling further below 50, the dividing line between contraction and expansion, according to data released by IHS Markit on April 1. - VNA