Fears escalate for shrinking Singapore manufacturing sector

PMI dipped to just 49.4.

According to DBS, the PMI figures announced yesterday evening came out mixed. The broad manufacturing index eased to 49.4, from 50.2 in the previous month. That is, the manufacturing sector is probably back in contraction mode (below 50) judging by this latest set of figures.

The dip in the overall PMI was attributed to lower level in new orders, production output and stocks of finished goods.

However, the PMI for the electronics cluster rose to 52.1, from 49.9 in the previous month.

"This is the first month of expansion after more than 4 consecutive months of contraction. The readings indicate further expansion in new orders from the domestic and overseas markets. Production output, inventory, imports and input prices reverted to expansion too," DBS said in a report.