Manufacturing activity in Singapore suffered a second month of decline but maintained its expansionary course for the 15th month in a row, thanks to the electronics sector’s continued resilience to a host of challenging supply chain issues.
However, analysts warned that electronics, which accounts for about a quarter of Singapore’s exports, may be nearing a peak in its growth cycle and the sector’s expansion may start to taper off later this year. September’s Singapore Purchasing Managers’ Index (PMI), a key bellwether of activity in the manufacturing industry, came in at 50.8.
This is 0.1 point lower than August, when it posted a drop of the same magnitude, said the Singapore Institute of Purchasing and Materials Management (SIPMM). Economists in a Bloomberg poll had expected the PMI to be unchanged at 50.9. Overall manufacturing has now recorded 15 months of consecutive expansion, that is, a PMI reading above 50. A reading below the 50 mark reflects contraction.