Purchasing Managers’ Indexes (PMIs) – produced by the Singapore Institute of Purchasing and Materials Management (SIPMM) – for the manufacturing sector fell in July, as did the electronics PMI. However, both remained within the expansive terrain.
The manufacturing PMI came in at 50.1 in July, down slightly from the 50.3 reading in June but still above the 50 point threshold that separates expansion from contraction in the sector. This reading is the 25th consecutive month of expansion in the manufacturing sector.
Meanwhile, the electronics PMI fell to 50.5 in July from 50.8 in June, marking the 24th consecutive month of expansion in the sector.
Commenting on the readings, Sophia Poh, Vice President of SIPMM noted:
The latest PMI readings pointed to the start of the second half of the year amid a somewhat bleak outlook for manufacturers. The sector continues to face global headwinds as rising inflation hit almost all advanced economies. This exacerbates the costly disruptions to global supply chains caused by the pandemic, as well as the protracted uncertainties arising from the conflict between Russia and Ukraine.”
Members of the FocusEconomics Consensus forecast committee expect manufacturing output to expand 5.9% in 2022, 0.7 percentage point higher than last month’s estimate, and to grow 2.5% in 2023.