Singapore: Optimism remains unchanged in the manufacturing sector – UOB

UOB Group’s Economist Barnabas Gan reviews the latest set of data in Singapore.

Key Quotes

“Singapore’s manufacturing Purchasing Managers’ Index (PMI) reported by SIPMM registered a smaller rate of expansion in February 2021 at 50.5, compared to 50.7 in the previous month… The latest PMI data saw the first month-on-month decline, after two straight months of gain. Still, it remained above 50 points for its 8th straight month, suggesting that the optimism has continued to outweigh.”

“We keep our 2021 manufacturing growth outlook at +3.0% y/y. The risk to our outlook appears to be balanced; upside risks to our outlook will include a quickerthan-expected rollout of the COVID-19 vaccine, resulting in an accelerated recovery back to pre-COVID-19 levels. On the other hand, uncertainties surrounding COVID-19 amidst the recent rise in geopolitical tensions may inject downside risks to our outlook.”