Manufacturing output rose 7.6% in March in Singapore

Manufacturing output rose 7.6% in March in Singapore

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Singapore’s manufacturing output rose 7.6 percent year-on-year in March for a fifth consecutive month of growth, albeit at a slower pace than the previous months.

March’s expansion follows a 16.5 percent year-on-year increase in February, according to official data released on Monday (Apr 26).

Excluding biomedical manufacturing, output grew by 14.9 percent in March.

Electronics lead the manufacturing output

The key electronics cluster led the growth in March with a 33.7 percent increase in output on a year-on-year basis.

This was attributed to the semiconductors segment expanding 37.8 percent, supported by demand from cloud services, data centers and 5G markets, said the Economic Development Board (EDB).

The computer peripherals and data storage segments also grew 27.4 percent.

Other clusters that saw output growth include chemicals, which expanded 9.5 percent, as well as precision engineering, which rose 5.6 percent.

Biomedical manufacturing output contracted 6.6 percent year-on-year in March, reversing the 22.1 percent increase in February.

The medical technology segment grew 23.3 percent with higher export demand for medical devices. On the other hand, the pharmaceuticals segment declined 9.6 percent with lower output of biological products.

The transport engineering cluster continued its decline, contracting 20.6 percent in March from the same period last year. The general manufacturing cluster fell at a slower pace, at -0.5 percent. 

On a seasonally adjusted month-to-month basis, manufacturing output decreased by 1.7 percent in March. Excluding biomedical manufacturing, output fell 3.2 percent.

Singapore’s economy grew 0.2% in Q1

Singapore’s economy grew by 0.2 percent year-on-year in the first quarter of 2021.

A turnaround after three quarters of contraction, as the country continued its recovery from the COVID-19 pandemic.

On a quarter-on-quarter seasonally adjusted basis, Singapore’s gross domestic product (GDP) expanded by 2 percent between January and March, extending the 3.8 percent growth in the previous quarter, advance estimates by the Ministry of Trade and Industry (MTI).

Source: Channel News Asia

SIPMM release figures showing factory activity rising

SIPMM release figures showing factory activity rising

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Singapore’s factory activity expanded for the ninth consecutive month, data from the Singapore Institute of Purchasing & Materials Management (SIPMM) showed. 

The Purchasing Managers’ Index posted an increase of 0.3 points from the previous month to post a faster rate of expansion at 50.8. 

This is the highest reading recorded since March 2019 when the PMI also posted a reading of 50.8. 

A PMI reading above 50 indicates that the manufacturing economy is generally expanding, while a figure below that threshold points to contraction. 

March’s reading was attributed to higher expansion rates in the indexes of new orders, new exports, inventory, employment and a slower expansion for the factory output index, said SIPMM.

Higher rates of expansion were recorded for the indexes of imports, input prices and order backlog. A lower rate of expansion was recorded for the finished goods stock index. 

The employment index reverted to a marginal expansion after recording contractions for 13 consecutive months. 

“Just when manufacturers were looking to a brighter outlook at the start of the year, the supply chain environment is again faced with supply disruptions that were caused by the Suez Canal blockage,” said Ms Poh, vice president of industry engagement and development at SIPMM.

Ms Poh added that although the blockage has been cleared, manufacturers expect the impact to last for several months. A

Other figures of the SIPMM

The Electronics Sector PMI posted a further dip of 0.2 points from the previous month to record a slower expansion at 50.6. 

This is the eighth month of expansion for the electronics sector, said SIPMM. 

The latest electronics sector reading was attributed to slower expansion rates for the indexes of new orders, new exports, factory output, inventory and employment. 

However, higher expansion rates were recorded for the electronics sector in the indexes of finished goods stock, imports, input prices and order backlog. 

Source: Channel News Asia

The factory activity of China expands in February

The factory activity of China expands in February

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China’s factory activity expanded in February at a slower pace than a month earlier, hitting the lowest level since last May and missing market expectations after brief COVID-19-related disruptions earlier in the year.

The official manufacturing Purchasing Manager’s Index (PMI) fell to 50.6 from 51.3 in January, data from the National Bureau of Statistics (NBS) showed on Sunday, remaining above the 50-point mark that separates growth from contraction.

Analysts had expected it to decline to 51.1.

China’s factory activity in the Lunar New Year

Chinese factory activity normally goes dormant during the Lunar New Year break as workers return to their home towns. This year, the government appealed to workers to remain local to curb the spread of COVID-19.

Generally, China’s economic recovery has been gathering pace due to robust exports, pent-up demand, and government stimulus.

The official PMI, which largely focuses on big and state-owned firms, showed the sub-index for new export orders was 48.8 in February compared with 50.2 in January, slipping back into contraction after months boosted by overseas demand.

A sub-index for activity among small firms stood at 48.3 in February versus 49.4 a month earlier. Smaller firms were more affected by the seasonal effects of the Lunar New Year, said Zhao Qinghe, an official with the NBS in comments released with the data.

A sub-index for employment in the official PMI stood at 48.1 in February, down from January’s 48.4 as firms laid off more workers and at a faster pace.

Still, some manufacturing sector firms are seeing increasing pressure from rising labor costs and a shortage of workers, said Zhao.

China’s factory activity gate prices rose on year in January for the first time in a year, as months of strong manufacturing growth pushed raw material costs higher.

China eked out 2.3% economic growth last year. This year, the government may avoid setting a growth target for fear of provincial economies feeling pressured to take on more debt, policy sources previously told Reuters.

China will reinforce policy support for foreign trade and ensure the smooth operation of supply chains, its new commerce minister said earlier this week.

In the services sector, activity expanded for the 11th consecutive month but at the slowest pace in a year.

Source: The Stars