Singapore's February PMI shows further contraction at 49.7

IN February, the Singapore Purchasing Managers' Index (PMI) contracted for the third month with a reading of 49.7 points.

This was due to the further decline in new orders, said the Singapore Institute of Purchasing and Materials Management.

While lower than January's figure by 0.2 point, the PMI for February was a touch above the 49.6 points recorded in December last year.

A reading above the 50-point threshold indicates that the manufacturing economy is expanding and a reading under 50 points to a decline.

Meanwhile, the key electronics index dipped 0.7 point to negative territory at 49.8 points in February, down from 50.5 points in January.

Economists BT spoke to said that the continued contraction in Singapore's overall PMI is due to both seasonal factors - Chinese New Year fell in February this year - and soft demand.