13th Month Expansion Is Highest Level Since 2018
Singapore manufacturing activity rose to its highest level yet since December 2018 when it expanded for the 13th month in a row. The expansion was as of July this year.
The expansion was recorded when the Singapore Purchasing Managers’ Index (PMI) hit 51 points in July. An above 50 PMI reading is recognized as an expansion. This recording was an increase of 0.2 points from June when it recorded a reading of 50.8.
A Good Time to Start a Business
Entrepreneurs who plan to start a Singapore company could potentially consider the manufacturing sector. With the Singapore manufacturing activity going strong, the sector looks promising. This growth is despite the tighter Covid-19 Delta variant restrictions.
The higher PMI reading in July was attributed to the rapid expansion of new orders, factory output, employment, new exports, and inventory. Employment was one sector that recorded five months of expansion. Other sectors with faster expansion include import and input prices.
Despite the heightened measures that were imposed because of the Covid-19 cases, manufacturing continued to expand for the second half of this year.
A Stark Contracts to the Rest of Asia
The rise and strong performance of the Singapore manufacturing activity sector is a stark contrast to the rest of its Asian neighbors. Activity across most of the other Southeast Asian regions is slumping due to the third Covid-19 outbreak wave.
Malaysia, Indonesia, and Thailand’s PMI all recorded shrinking numbers. Economic recovery in China was also slowing down. It was only countries in the north Asia regions like Japan, Taiwan, and South Korea that continue to see some expansion besides Singapore. At this stage, Singapore’s electronics and manufacturing sector remains resilient.