Outlook for the manufacturing sector remains positive – UOB

Economist at UOB Group Barnabas Gan assesses the recent PMI results in Singapore.

Key Takeaways

“Singapore’s manufacturing Purchasing Managers’ Index (PMI) reported by SIPMM declined by 0.4 point to 50.2 in Feb 2022. This marks the 20th straight month where PMI is above the expansionary 50.0 mark. Likewise, the electronic PMI registered a fall of 0.3 point to post a slower rate of expansion at 50.5.”

“The marginal fall in Jan’s PMI reading, despite being in expansionary territory, was attributed to slower expansion rates in new orders, new exports, factory output and employment. Nonetheless, indexes of supplier deliveries and input prices posted faster expansion rates.”

“Our view that Singapore’s manufacturing sector is one of the key economic support pillars remains unchanged. For 2022, we expect full-year manufacturing to grow by an average of 4.0%, underpinned by the buoyant global trade activity expected for the year ahead.”