Manufacturing Sector Expands for 15th Consecutive Month Amidst Front-Loading of Production and Exports
Singapore’s Purchasing Managers’ Index (PMI) saw a 0.2-point increase in November 2024, rising to 51, signaling a continued expansion in the country’s overall manufacturing sector. This marks the 15th consecutive month of expansion, a trend also seen in the electronics sector, which posted a PMI of 51.6 for the same month, indicating a 13th month of growth.
The data, released by the Singapore Institute of Purchasing and Materials Management (SIPMM) on December 2, suggests that the positive trend in Singapore mirrors a broader regional improvement in factory activity.
Economists speculate that the uptick in activity could be partly due to front-loading of production and exports, as manufacturers may be seeking to avoid potential tariffs expected from US President-elect Donald Trump. Trump has threatened to impose tariffs on major trading partners, including China, when he resumes office in January 2025.
Notably, indices for new orders, new export orders, and output showed significant improvements, a sign that manufacturers may be accelerating their production schedules to avoid disruptions. Experts like Jester Koh from UOB and Selena Ling from OCBC believe that while the front-loading effect is evident, the sustainability of this growth is uncertain and may diminish in the coming year.
