Singapore Manufacturing Indicators Slow for 2nd Straight Month

Mixed reactions from analysts as PMI dips again in Feb, a back-to-back deceleration for first time in nearly 2 years

- Colin Tan

Leading indicators for Singapore's manufacturing sector posted back-to-back deceleration for the first time in almost two years.

The purchasing managers' index (PMI) - a barometer of the sector - dipped another 0.2 point in February to 50.7, down from January's 50.9 points.

Readings above 50 indicate growth; those below point to contraction.

While electronics remained the main driver of manufacturing output, its PMI also fell - slipping to 51 points in February, from 51.1 the previous month, according to data from the Singapore Institute of Purchasing and Materials Management on March 3.

Associate Professor Goh Puay Guan from NUS Business School's Department of Analytics and Operations said that despite the deceleration, both the manufacturing and electronics PMIs remain positive.

"This could indicate that some of the front-loading effects that we saw last year - with manufacturing and inventory build-up in response to trade uncertainties - could be wearing off," he noted.

In contrast, DBS Bank economist Chua Han Teng felt that the PMIs "showed an increasingly mixed outlook for the manufacturing sector".

Dr Chua Hak Bin, senior economist at Maybank Research, echoed the sentiment.