Going by the upward trend of growth in Singapore, it can be safely said that it is going to be a successful end of the year for manufacturers in this country. While the electronics segment showed a vast growth, other sectors in the country also showed signs of improvement, as per the economists. Since manufacturing makes for the major contributor (1/5th) of the economy of the country, economists believe that it will continue being the brightest spot in the upcoming year as well.
This trend of growth in the country’s economy is depicted by the latest PMI – Purchasing Manager’s Index. It is compiled by Singapore Institute of Purchasing and Material’s Management. As per stats, PMI showed a significant improvement in November (52.9) as compared to October (52.6). The latest recorded reading of PMI is said to be the highest country has seen since December 2009. Another stirring fact is that November 2017 marks the 15th consecutive month showing an upward trend in the manufacturing sector in Singapore. Electronic sector’s PMI rose from 53.3 to 53.5 in November. It is the 15th successive month of growth in this sector.
The PMI collecting authority is of the view that most of the sectors in Singapore have shown expansion. They also believe that it will continue growing in the next year as well, which implies prosperous time for manufacturers in Singapore.
Irvin Seah, the senior economist in DBS, maintains that the country’s growth has been on the rise and manufacturing sector is majorly responsible for it. However, there are certain signs, which may lead to moderation in upcoming time. As per him, even though country’s PMI typically rises towards the end of the year because is not adjusted seasonally, the numbers are still on the high. It implies that the year, in most probability, will close on a high. As a result, an overall economic growth is expected.
Mr. Song, CIMB Private Bank economist, has predicted that factory output and exports of the country will see continue rising at the start of the next year as well. Contrary to the popular belief, he believes that non electronic segments are the driving force behind the rise in PMI numbers. Due to rise in demand, he stated that he personally knows a manufacturer who was asked by their employees to camp in the factory for the purpose of meeting the high demand.
The upward trend of regional marketing can be seen from the rise in its numbers. The numbers were 50.4 in October; however, they rose to 50.8 in November, making it 4thconsecutive month to witness growth. Nikkei Asean Manufacturing PMI, stressing on the growth in numbers, suggested that regional manufacturing will show an upward trend in the upcoming time.
The final quarter of the year can turn out to be the strongest performance witnessed by Singapore in last three or more years. This is the view of HIS Markit’s principal economist Mr. Bernard Aw. He further stated that the numbers in production and new orders have surged in last month. As a result, Asean manufacturers had to recruit more employees in order to meet the growing demand.
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