SINGAPORE, April 2 (Xinhua) -- Singapore Institute of Purchasing and Materials Management (SIPMM) announced on Monday the country's purchasing managers' index (PMI), an early indicator of manufacturing activity, rose 0.3 points from 52.7 in February to 53 in March.
It marks the 19th month of consecutive expansion of Singapore's manufacturing sector.
Meanwhile, the PMI of Singapore's electronics industry climbed from 52.1 to 52.4, marking the 20th month of consecutive expansion of Singapore's electronics industry.
A PMI reading of 50 and above indicates expansion, while a reading below 50 indicates contraction.
According to the SIPMM, the higher PMI reading was attributed mainly to faster growth in factory output, as well as higher new orders and new exports. Meanwhile, the reading was broad-based across most manufacturing sectors, indicating the resilience of the sectors.
However, Selena Ling, Head of Treasury Research & Strategy of OCBC Bank, said Singapore's PMI improvement bucked the trend within Asia whose manufacturing PMIs had largely softened.
She said the manufacturing PMI contractions in several other Asian countries and areas clearly suggest some downside risks to regional manufacturing momentum in the months ahead.
Looking forward, Ling said Singapore's Gross Domestic Products (GDP) growth was expected to hit a year-on-year 5.1 percent in the first quarter of 2018, which already incorporates the stronger performance in the first two months of this year.
Yet she keeps the forecast of Singapore's 2018 full-year GDP growth at between three and four percent year on year, given the escalating U.S.-China trade tensions which could weigh on business confidence and market sentiments in the near-term.