Singapore's PMI contracts again, at 48.9 in Oct

SINGAPORE'S Purchasing Managers' Index (PMI) remained in contraction mode in October, although it rose 0.3 point to 48.9.

This was exactly in line with what private-sector economists polled by Bloomberg had been expecting.

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, as well as production output.

"Inventory recorded its first-time contraction after having expanded over five consecutive months."

The electronics PMI also stayed below the 50-point mark in October, with a marginal 0.1 point rise to 48.6. This was lower than the market's forecast of 49.0.

The contractionary reading was due to declines in new orders from domestic and overseas markets, as well as production output and inventory.