Singapore factory activity grows at slower pace as trade war looms

Electronics still the main driver, but its growth also slows in January

- Colin Tan

Singapore's manufacturing sector - like most of its Asian counterparts - is bracing itself for the impact from a looming trade war triggered by US President Donald Trump's recently announced tariffs against key trading partners China, Canada and Mexico.

The purchasing managers' index (PMI), a barometer of the sector, dipped 0.2 point in January to 50.9, down from December's 51.1 points. Readings above 50 indicate growth; those below point to contraction.

While electronics remained the main driver, its PMI reading also slipped by 0.3 point to 51.1, according to data from the Singapore Institute of Purchasing and Materials Management on Feb 3.

In the region, the slower growth in factory activity rippled across most of Asean, as well as in the North Asian economies of China and Taiwan. Notably, factory activity in Malaysia, Thailand and Vietnam is likely to remain in contraction.

Only data from South Korea and Indonesia pointed to faster growth ahead.