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Singapore's August PMI contracts further to 49.3

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Singapore's Purchasing Managers' Index (PMI) slipped further into contraction mode in August, sinking 0.4 point to 49.3 - although the drop was not unexpected.

SINGAPORE'S Purchasing Managers' Index (PMI) slipped further into contraction mode in August, sinking 0.4 point to 49.3 - although the drop was not unexpected.

Private-sector economists polled by Bloomberg had earlier projected a reading of 49.4, down from July's 49.7.

A reading above 50 denotes growth, while one under 50 points to a contraction in the manufacturing sector.

Said the Singapore Institute of Purchasing & Materials Management (SIPMM), which compiles the index monthly from a survey of more than 150 manufacturing firms' purchasing managers: "The contraction in the overall PMI was attributed to further contraction in new orders, new export orders, production output as well as input prices.

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Market voices on:

"Inventory, stockholdings of finished goods and imports continued to expand and recorded lower readings."

The electronics PMI also stayed below the 50-point mark in August, dropping 0.5 point to 49.0 - exactly at the market's forecast.

The electronics readings indicated a further decline in new orders from domestic and overseas markets. "Production output contracted further and inventory reverted to contraction after having moderated in the earlier month," added SIPMM.