Singapore’s PMI Falls To 49.3 In August
Singapore’s manufacturing contracted further in August, with the Purchasing Managers’ Index (PMI) dropping to 49.3, down from 49.7 in the previous month, said the Singapore Institute of Purchasing & Materials Management Wednesday.
This is the 2nd consecutive month of contraction, and the drop is mainly due to further drop in new orders, new export orders, production output as well as input prices. A reading above 50 in the PMI indicates an expansion in the manufacturing sector, a reading below 50 suggests contraction.
The PMI in the electronics sector also dipped to 49 in July. Some economists say that Singapore’s weak PMI readings are consistent with weak manufacturing data coming out of China, South Korea, Malaysia and Indonesia.
China’s manufacturing PMI fell to the lowest level in 3 years at 49.7 in August, while Japan, and China’s Taiwan also registered falls in their PMI readings.
According to the data the weak readings increased the possibility that Singapore could slip into a technical recession during Q-3, if services also falter on the uncertainties in China.
Stay tuned…
HeffX-LTN
Paul Ebeling
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