As we step into the new week, several key Singapore economic indicators are set to provide a clearer picture of the market’s health. Investors should keep an eye on the country’s manufacturing performance, retail sales, and private home prices. In these areas, the latest previous data showed a continued expansion in the manufacturing sector, a rebound in retail sales, and a modest rise in home prices. This week, we will see new data releases that could see these trends continue or indicate new directions for the economy.
The Singapore Institute of Purchasing & Materials Management (SIPMM) Purchasing Managers Index (PMI) for September will be closely watched, as it provides a snapshot of the manufacturing sector’s health. The previous reading in August edged up to 50.9 from 50.7 in July, marking the 12th consecutive month of expansion and the highest reading in three years. Notably, the electronics PMI, which accounts for about a third of factory activity, also showed a faster pace of expansion, rising to 51.3 from 51 in the previous month.
Similarly, the S&P Global Singapore PMI for September will be under scrutiny. The August reading increased to 57.6 from 57.2 in July. This growth was driven by significant increases in new orders and output, supported by improved demand conditions.
Retail sales data for August will be another critical indicator. In July, retail sales rebounded strongly, growing by 1% year-on-year, recovering from a 0.6% decline in the previous month. On a monthly basis, retail sales surged by 3.1%, the fastest growth in five months, following a 3.7% drop in June. This recovery highlights the resilience of consumer spending despite the challenging economic environment.
The upcoming preliminary figures for third quarter (Q3) from the Urban Redevelopment Authority (URA) Private Residential Property Price Index will be crucial for understanding ongoing trends in the property market, which is a significant component of Singapore’s economy. In Q2 2024, private home prices in Singapore saw a modest increase of 0.9% quarter-on-quarter, slightly below the preliminary estimates of a 1.1% rise and a slowdown from the 1.4% growth observed in Q1.
Other key economic indicators to watch include the deposits and balances of residents outside Singapore, as well as the money supply measures (M1 and M2). Changes in these figures can provide insights into capital flows, investor confidence, and overall liquidity in the economy.
Investors should also note the following ex-dividend dates: Lion-OCBC Securities Singapore Low Carbon ETF (SGX: ESG) with a dividend of S$0.03, NikkoAM-StraitsTrading Asia ex Japan REIT ETF (SGX: CFA) offering S$0.0111, and New Toyo International Holdings Ltd (SGX: N08) providing S$0.009.
In summary, investors should focus on the manufacturing PMI figures, retail sales data, and preliminary Q3 private home prices to gauge economic momentum. Staying informed about these indicators can help investors make well-rounded investment decisions in the week ahead.
Disclaimer: ProsperUs Manager of Content Hailey Chung doesn’t own shares of any mentioned companies.
