New PMI may help plug gap in services sector data

SINGAPORE now has a new gauge of how its economic winds are blowing. And economy watchers here welcomed the economy-wide purchasing managers' index (PMI) launched on Friday as one that might help fill a long-standing gap in timely information on Singapore's growing services sector.

The Nikkei Singapore PMI, produced by Markit, the financial information services provider behind PMIs for more than 30 countries and regions, covers more sectors and companies than the familiar PMI compiled by the Singapore Institute of Purchasing & Materials Management (SIPMM). That focuses solely on the manufacturing economy and polls purchasing executives from about 150 companies, compared to Markit's 400-strong survey panel.

Though the bulk of PMIs produced by Markit are manufacturing or services-specific ones, it chose a "whole economy" format for Singapore that is also used for Hong Kong, Egypt, Lebanon, United Arab Emirates, Saudi Arabia, South Africa and Kenya. "We believe that a whole economy PMI provides a broader and more comprehensive measure of business conditions in Singapore," Markit said.