Singapore: Recovery looks well and sound so far – UOB

Economist at UOB Group Barnabas Gan reviewed the recent PMI releases in Singapore.

Key Quotes

“Singapore’s manufacturing PMI reported by SIPMM rose 0.2 points to register 50.3 in September 2020, marking its third straight month of expansion. Similarly, the electronic PMI rose at a faster pace at 0.3 points to end at 50.9, the highest level since a year ago.”

“The latest PMI data is relatively more upbeat, considering first-time expansions in new orders in 8 months, as well as faster rates of expansions in new exports and factory output. Overall, the data continue to suggest a relatively rosier economic backdrop as compared to the first half of 2020.”

“Overall, the higher readings in both manufacturing and electronic PMIs signal that a recovery is taking place, while recent high-frequency data points toward a relatively better economic environment in 2H20. The continued improvements in Singapore’s economic backdrop supports our view for MAS to keep its monetary policy parameters unchanged in its upcoming meeting that will be held no later than 14 October 2020.”