The Singapore Institute of Purchasing and Materials Management (SIPMM) has released the February 2025 Purchasing Managers’ Index (PMI), revealing a contraction in the manufacturing sector. The PMI, a key indicator of economic health, fell to 49.8, down from 50.1 in January, marking a shift into contraction territory.
The decline in the PMI suggests a slowdown in manufacturing activity, which is critical for Singapore’s economy. A PMI reading below 50 typically indicates a contraction in the sector, whilst a reading above 50 signifies expansion. The February figure reflects challenges faced by manufacturers, including supply chain disruptions and fluctuating demand.
The SIPMM report highlights that the contraction was driven by decreases in new orders, production output, and inventory levels. These factors have contributed to a more cautious outlook for the manufacturing industry in the coming months. The report also notes that employment levels in the sector have remained stable, despite the overall downturn.
The PMI is a vital tool for policymakers and businesses to gauge economic trends and make informed decisions. As Singapore navigates these economic challenges, the manufacturing sector’s performance will be closely monitored for signs of recovery or further decline.
Looking ahead, the SIPMM emphasises the importance of addressing supply chain issues and adapting to changing market conditions to support the sector’s recovery. The next PMI release will provide further insights into the trajectory of Singapore’s manufacturing industry.
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