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RHB expects Singapore's PMI to moderate in 1Q21; sees potential disruption in the semicon industry

Felicia Tan
Felicia Tan • 3 min read
RHB expects Singapore's PMI to moderate in 1Q21; sees potential disruption in the semicon industry
The team at RHB have also maintained its GDP forecast for 2021 at 5.5% y-o-y from 2020’s -6.0% y-o-y.
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The team at RHB Group Research says it foresees a slight moderation in Singapore’s Purchasing Managers’ Index (PMI) in the 1Q2021 despite the positive momentum witnessed towards the end of 2020.

According to the team in an economics view report dated Feb 3, manufacturers remain “cautiously optimistic” over the growth outlook in 2021. The outlook is due mainly to concerns over the resurgence of infections and countries’ responses to the rising number of infections.

The way they see it, a potential disruption in the global supply chain may provide additional downside risk to the PMI momentum – particularly for the semiconductor industry.

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