Economist at UOB Group Barnabas Gan assessed the latest PMI print in Singapore, which came back to levels above the key 50.0 threshold for the first time since the beginning of the year.
“Singapore’s manufacturing and electronic PMIs reported by SIPMM rose for the third month in July 2020. Headline manufacturing PMI managed to eke out a moderate expansion at 50.2 after seeing contractions in the past five months.”
“A relatively rosier external environment and manufacturing momentum was seen in July. Headline PMI rose on the back of expansions in new exports and factory output, seen from Singapore’s re-opening of its economy via Phase Two.”
“The improvement in Singapore’s PMI is encouraging especially given the risks of second-third waves of the COVID-19 pandemic in major economies. Further expansions in Singapore’s headline PMI will still depend on its external environment and manufacturing outlook in 2H20.”