Singapore's factory activity expands for 22nd straight month in April despite challenges in global markets
SINGAPORE: Singapore's factory activity expanded for the 22nd consecutive month in April despite several challenges in the global markets, data released on Wednesday (May 4) by the Singapore Institute of Purchasing and Materials Management (SIPMM) showed.
The Purchasing Managers’ Index (PMI) rose 0.2 points from the previous month to 50.3 in April, said SIPMM.
A PMI reading above 50 indicates that the manufacturing economy is generally expanding, while a figure below that threshold points to contraction.
The latest reading was attributed to faster expansion rates in key indexes of new orders, new exports, factory output and employment, as well as a slower contraction rate in the inventory index.
"The indexes of imports, input prices, and order backlog posted faster expansion rates, whereas the supplier deliveries index posted a slower expansion rate," said the institute.
The finished goods index also posted a slightly faster contraction rate, it added.
The input prices index continued its upwards trend, posting a reading of 52.1. This was the highest reading since October 2013, when it recorded a reading of 53.
SIPMM vice president for industry engagement and development Sophia Poh said the latest PMI readings "bode well" for the manufacturing sector despite "several challenges in the global markets".
"There appears to be no end in sight to the Russia-Ukraine conflict, and local manufacturers are increasingly concerned about the rising energy cost, supply disruptions, and inflationary pressures," she added.
The electronics sector PMI posted an increase of 0.3 points in April from the previous month to record a faster rate of expansion at 50.7, the 21st month of consecutive expansion for the sector.
"The latest sector reading was attributed to faster expansion rates in the key indexes of new orders, new exports, and employment," said SIPMM.
The factory output index recovered from a contraction while the inventory index posted a slower contraction, it added.
Faster expansion rates were also recorded for the indexes of imports, input prices, and order backlog.
"Both the indexes of supplier deliveries and finished goods posted faster contraction rates," said SIPMM.
"The electronics order backlog had posted expansion for 22 continuous months."