SINGAPORE, March 2 (Xinhua) -- Singapore's purchasing managers' index (PMI), an early indicator of manufacturing activity, dropped 0.4 points to 52.7 in February, according to the Singapore Institute of Purchasing and Materials Management (SIPMM) on Friday.
It marks the 18th month of consecutive expansion of Singapore's manufacturing sector.
Meanwhile, the PMI of Singapore's electronics industry dropped from 52.9 to 52.1, the lowest since July 2017. It marks the 19th 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.
Selena Ling, head of treasury research & strategy of OCBC Bank, said the main drag of the manufacturing PMI was the electronics industry, with non-electronics manufacturing sectors also moderating.
She said Singapore's PMI readings may decline for seasonal effects, as the Chinese New Year festive season may have skewed January-February readings, thus analysts may have to wait for the March data for clarity.
Looking forward, Ling said she does not expect that the double-digit expansion in January manufacturing output can sustain. She forecasts that Singapore's manufacturing growth for the first three months and the whole year of 2018 will be at a still healthy pace of 6.7 percent year on year and 4.9 percent year on year, respectively.
