Singapore PMI summary as of March 2023

The March reading of the Singapore Purchasing Managers’ Index (PMI) dipped 0.1 point from the previous month to post a marginal contraction at 49.9. The latest PMI reading was attributed to a moderation in the indexes of factory output and supplier deliveries, a contraction in the new orders index, a slower contraction in the inventory, as well as a faster contraction in the new exports index. The finished goods index recorded a slower contraction and had posted 13 months of continuous contraction. The Electronics Sector PMI edged up 0.1 point from the previous month to post yet another slower contraction at 49.4. The latest sector reading was attributed to a slower contraction in the key indexes of new orders, new exports, and employment, as well as a faster contraction in both factory output and inventory.

The overall manufacturing sector had ended the first quarter with a marginal contraction, amid continuing contraction in the electronics sector. The recent western bank crisis has ratcheted up fears of a contagion and dampened demand in the global markets. Nonetheless, Singapore manufacturers were hopeful that China’s reopening could have a positive impact on growth in the near term.

Stephen Poh, Executive Director