Economist at UOB Group Barnabas Gan assessed the latest PMI figures in Singapore.
“Singapore’s manufacturing and electronic PMI reported by SIPMM rose in May 2020 after touching its 2008 lows in the previous month. They however remained below their 50.0 mark, marking the fourth straight month of contraction.”
“New orders, exports, and factory output continued to drag the overall PMI indices, highlighting the ongoing supply chain disruptions and negative demand shocks pertinent from the COVID-19 pandemic.”
“In another release by IHS Markit, Singapore’s whole economy PMI declined to a new low of 27.1 in May 2020, down from 28.1 in the previous month. The latest data suggests ‘another considerable drop in business activity’.”
“Collectively, the contraction seen in both Markit and SIPMM PMI for May 2020 suggests further headwinds against Singapore’s manufacturing environment. Key manufacturing sectors, save for biomedical manufacturing, could remain in the doldrums for the year ahead as COVID-19 wears on.”