Bad news brews for Singapore’s small and open economy.
Singapore’s first official set of economic numbers for the year will likely be anemic for the city-state, as non-oil domestic export numbers expected to fall by drastic lows.
According to analysts from DBS, global outlook has worsened as shown by the latest PMI figures.
“The headline manufacturing PMI (January) dipped by 0.5pt to 49.0 in the month. Electronics PMI also fell, to 48.5, down from 48.9 in the previous month. All key sub-indexes are pointing to more challenging times ahead for the manufacturing sector,” DBS said.
Meanwhile, production, new orders, and employment indexes are unanimously down, reflecting manufacturers’ anticipation of muted demand.
Additionally, there were also surges on inventory stocks of finished goods, reflecting the dire economic conditions as inventory stocks were not translated into sales.
“Tomorrow’s NODX will add on to the growing list of poor economic data. Most importantly, if such trend persists, recession will become a clear and present danger,” DBS warns.
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