Chart of the Day: Here’s why it’s not all gloom and doom for the local economy

Whole economy PMI improved to highest since February.

Even though manufacturing and electronics PMI readings contracted for the third consecutive month, there's still reason to be hopeful for Singapore's economy, as the whole economy PMI went its separate way and improved to 51.4.

The improvement was brought about by higher output, though orders have been unchanged, according to analysts from OCBC.

"Output saw solid increase amid new projects, product launches and promotional activities. Total new work was static for the 2nd straight month, while new overseas work rose only slightly," OCBC said.

Meanwhile, input costs rose at its fastest pace since February, which companies passed onto clients via higher selling prices.

Despite the current downturn, analysts remain hopeful for Singapore's manufacturing future.

"Manufacturing base effects for 4Q15 should be more favorable and we expect manufacturing growth to contract by 1.7% yoy in 4Q15, versus -4.9% yoy in 3Q15," OCBC said.

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