Singapore's Dec PMI falls to lowest in close to 2 years

SINGAPORE'S manufacturing sector contracted in December, according to the latest Purchasing Managers' Index (PMI), which has fallen to its lowest in close to two years.

The barometer of industrial activity fell into contraction territory after three months of expansion with a reading of 49.6, down from November's 51.8.

This came as new orders shrank and new export orders grew at a slower pace, said the Singapore Institute of Purchasing and Materials Management, which compiles the monthly index based on a survey of purchasing managers at more than 150 industrial companies.

Generally, a PMI reading above 50 indicates growth, while one below indicates contraction.

The electronics sector's PMI kept above that 50-point threshold, but still slipped from November's 50.6 reading to 50.5 in December. Although new orders for the sector expanded further in December, new export orders contracted for a second consecutive month.