Manufacturing PMI contracted to 49.4 in November
It was dragged by growth slowdown in new orders and new exports, amongst others.
Singapore’s manufacturing purchasing managers’ Index (PMI) fell into contraction as it dipped 0.4 points to 49.9, according to the Singapore Institute of Purchasing & Materials Management (SIPMM).
The index was dragged by the slowdown in the growth of new orders and new exports, factory output, inventory, as well as employment level, SIPMM noted.
As the reading of the PMI above 50 indicates that the manufacturing economy is expanding whilst that of below 50 indicates a declining performance, the latest headline figure represents contraction for the PMI. According to SIPMM, the November PMI is the lowest since July 2017.
Despite slower growth by 2 points, the employment index continued to seal expansion at a reading of 50.5. The indexes for finished goods and input prices both expanded at lower rates to 51.6 and 50.8, respectively.
Meanwhile, imports and supplier deliveries expanded by 2 points to 51.3 and 1 point to 51.1, respectively. However, the order backlog index continued to contract for the second month to 49.7.
The electronics sector PMI also entered the contractionary zone as it dropped 0.6 points to 49.9.
“This contraction reading of the electronics sector was due to slower expansion in the key indicators of new orders, new exports, factory output, and inventory,” SIPMM explained.
Despite the contraction reading, the employment index posted a slightly faster reading to 50.4. The sector’s indexes of finished goods, imports, and input prices posted expansion at lower rates to 51, 50.3, and 50.9, respectively.
Meanwhile, the electronic sector’s order backlog index posted a contraction for the 7th month to 48.6.