Singapore’s manufacturing activity contracted for a fourth consecutive month in October as orders fell further, a business survey showed, bucking the tepid signs of improvement in other parts of Asia.
Singapore’s Purchasing Manager’s index (PMI) slipped deeper into negative territory last month, dropping to 48.3 points from September’s 48.7 points, the Singapore Institute of Purchasing & Materials Management (SIPMM) said on Monday.
A PMI reading below 50 shows activity is contracting.
“The dip in the overall PMI was attributed to a further decline in new orders, new export orders as well as production output,” SIPMM said in a statement.
“Employment continued to contract for its 16th consecutive month,” the institute added.
The drop in Singapore’s PMI reading contrasts with Hong Kong, where a PMI compiled by HSBC rebounded to positive territory in October as output and employment increased.
HSBC’s services PMI for China slipped to 53.5 in October from September’s four-month higher of 54.3.
“Despite the moderation of services activity growth, the Chinese economy is gradually bottoming out as the filtering-through of earlier easing policy is boosting domestic demand,” HSBC said in a note accompanying its report.
A separate PMI for Singapore’s electronics sector weakened as well, falling to 47.5 in October from 50.0 in September, SIPMM said.
Singapore’s economy contracted an annualised and seasonally adjusted 1.5% in the third quarter, and the city-state escaped falling into a recession only because gross domestic product data was revised to show the economy grew slightly in the second quarter.
The Monetary Authority of Singapore reiterated last week the economy is likely to grow by 1.5 to 2.5% this year and that the lacklustre growth is expected to extend into 2013 as exports remained weak.
Singapore PMI shrinks for 4th month as orders fall further
Singapore’s manufacturing activity contracted for a fourth consecutive month in October as orders fell further, a business survey showed, bucking the tepid signs of improvement in other parts of Asia.
Singapore’s Purchasing Manager’s index (PMI) slipped deeper into negative territory last month, dropping to 48.3 points from September’s 48.7 points, the Singapore Institute of Purchasing & Materials Management (SIPMM) said on Monday.
A PMI reading below 50 shows activity is contracting.
“The dip in the overall PMI was attributed to a further decline in new orders, new export orders as well as production output,” SIPMM said in a statement.
“Employment continued to contract for its 16th consecutive month,” the institute added.
The drop in Singapore’s PMI reading contrasts with Hong Kong, where a PMI compiled by HSBC rebounded to positive territory in October as output and employment increased.
HSBC’s services PMI for China slipped to 53.5 in October from September’s four-month higher of 54.3.
“Despite the moderation of services activity growth, the Chinese economy is gradually bottoming out as the filtering-through of earlier easing policy is boosting domestic demand,” HSBC said in a note accompanying its report.
A separate PMI for Singapore’s electronics sector weakened as well, falling to 47.5 in October from 50.0 in September, SIPMM said.
Singapore’s economy contracted an annualised and seasonally adjusted 1.5% in the third quarter, and the city-state escaped falling into a recession only because gross domestic product data was revised to show the economy grew slightly in the second quarter.
The Monetary Authority of Singapore reiterated last week the economy is likely to grow by 1.5 to 2.5% this year and that the lacklustre growth is expected to extend into 2013 as exports remained weak.
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