According to analysts the manufacturing activity in Singapore could be witnessing a slight upward trend as the Purchasing Managers’ Index (PMI) is showing a slight improvement in this month. However, the global outlook still seems a bit tentative and volatile, but the strong US economy and dropping energy prices sure make a case in the favor of boosting the manufacturing sector in Singapore.
In January 2015 the manufacturing activities in Singapore remained soft despite the general improvement in earlier month. Economists stated that the volatility could remain due to reasons such as Chinese New Year and other external factors such as trends in China and Europe.
Mr Irvin Seah, a senior economist at DBS stated, in the initial months of 2015 PMI numbers are slightly less predictable, and even more when projections of rest of the year are in question due to significant seasonal effects.
He further added that a seasonally adjusted perspective indicates that the outlook of past months is quite flat. This means the manufacturing sector has bottomed out, and there evidently is stronger growth from the western markets. However, for now Singapore needs to be careful of the drag from China manufacturers and Eurozone. In the larger scheme of things the outlook for the manufacturing sector for this year does look slightly more positive.
Projections indicate as oil prices weaken further it would only been that the manufacturing sector in Singapore would get a bigger boost.
Looking forward, the PMI is expected to show increased broad-based improvements as manufacturers look at both, rise in demand for oil products and non-oil products.