Chart of the Day: PMI contracts further

There will be spillover effects on the other segments of the economy, warns DBS.

DBS Group Research noted:

Singapore’s very own PMI as well as the PMIs of key markets have been sliding further southward into the contraction territory (<50). The SEMI book-to-bill ratio, an indicator on the health of the electronics industry has dipped to below parity level, signaling a contraction in the industry.

In short, the manufacturing sector is in for a rough patch. Not only will it affect the headline GDP figure, there will be spillover effects on the other segments of the economy, specifically the services sector.

The services sector has contracted by 0.6% QoQ saar in the second quarter, down from an expansion of 2.9% in 1Q12. Except for the transportation, inforcomm and the financial services industries, all segments within the services sector have shrunk in 2Q12. Judging from the current external economic conditions, such sluggish growth momentum will likely persist in the coming quarters.

In addition, the tightening measures on foreign labour probably have also suppressed growth momentum in some of those foreign labour-intensive industries. This is likely to be reflected in the continued poor performance by the construction sector. Developers may also be slowing down the pace of construction amid a gradual cooling down in the property market.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia