Electronics sector shrinks after 2 years of expansion

Its orders and output fall, leading to slower growth in S’pore factory activity in Aug

- Adeline Tan

The electronics sector pulled back last month after two consecutive years of expansion and almost sent overall factory activity into contraction.

The sector’s purchasing managers’ index (PMI) fell to 49.6, down 0.9 point from July, noted the Singapore Institute of Purchasing and Materials Management on Friday.

A reading above 50 indicates growth, while one below 50 signals contraction.

The electronics PMI was weighed down by fewer new orders and lower output, among other factors.

Its poorer performance resulted in slower growth in overall factory activity – down 0.1 point from July to 50 – although the manufacturing sector still clocked its 26th consecutive month of expansion.