Manufacturing hits 5-year low

After months of slow growth, the manufacturing industry finally slipped into the contractionary zone, the lowest in five years.

The Purchasing Managers Index, a study conducted monthly by the Singapore Institute of Purchasing and Materials Management (SIPMM) gives an indication on the general health of the manufacturing industry, where a reading above 50 points to a generally expanding manufacturing economy.

The PMI registered 49.4 points in March, slipping 0.9 of a point over the previous month. The index was the lowest level in almost five years.

The electronics PMI also slipped half a point, but maintained in the black at 50.7. According to the report, electronics manufacturers benefited from brisk demand from domestic but not overseas customers.

The PMI had been logging slow growth rates since December, where the index slipped 2.8 points to reach 51 points.