The Singapore Institute of Purchasing and Materials Management (SIPMM) has released the April 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 50.2 in March, marking the first contraction since November 2024. A PMI reading below 50 indicates a decline in manufacturing activity.
The decline in April’s PMI is attributed to a decrease in new orders and production output, which have been impacted by global supply chain disruptions and weakened demand. The electronics sector, a significant component of Singapore’s manufacturing industry, also experienced a downturn, with its PMI dropping to 49.5 from 50.1 in the previous month.
SIPMM noted that the contraction reflects ongoing challenges in the global economic environment, including geopolitical tensions and fluctuating commodity prices. “The manufacturing sector is facing headwinds from external uncertainties, which are affecting business confidence and investment,” SIPMM stated.
Despite the contraction, some analysts remain cautiously optimistic about the sector’s recovery prospects, citing potential stabilisation in the latter half of the year as supply chains adjust and demand gradually rebounds.
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