Dip in S'pore factory output may just be a blip: Economists

Manufacturing recovery remains intact since strong turnaround in Q2, they say

- Colin Tan

A marginal dip in manufacturing activity in October points to a slight slowdown in the sector, but this may just be a blip in the data for now, economists say.

October's purchasing managers' index (PMI) eased to 50.8 points, down from 51 points in September. A barometer of the manufacturing sector, PMI readings above 50 indicate growth, while those below signal contraction.

Electronics remains a crucial driver of economic growth, despite its PMI also posting a slight drop to 51.4 points, from 51.5 points in September, according to data released by the Singapore Institute of Purchasing and Materials Management on Nov 2.

At the sub-index level, imports, employment and supplier deliveries saw marginal improvements in both the main and electronics PMIs.

In comparison, stocks of finished goods and backlogs of orders advanced for the main PMI but retreated for electronics. All other sub-indices registered small declines for both PMIs.