Manufacturing economy disappoints for 5 times in a row

November PMI just reached 48.8.

According to Singapore Purchasing Managers’ Index (PMI), the November reading indicated that the manufacturing economy contracted for the 5th time after having previously recorded 2 months of continuous expansion. The PMI posted a reading of 48.8, which was a marginal increase of 0.5 point over the previous month.

The contraction in the overall PMI was attributed to further decline in new orders, new export orders as well as production output. Whilst inventory expanded for the 2nd consecutive month, stockholdings of finished goods, imports, input prices as well as employment continued to contract and recorded improved readings.

In the electronics sector, the index posted a further contraction at 47.4, which was a marginal dip of 0.1 point over the previous month. It was the 2nd consecutive month of contraction for the sector after having moderated in the earlier month.

The readings indicated further contraction in new orders, new export orders, production output as well as stockholdings of finished goods. Whilst inventory reverted to expansion, electronics imports, input prices and employment continued to contract in the electronics sector. 

A reading of the Singapore Purchasing Managers’ Index above 50 indicates that the manufacturing economy is generally expanding and that the economy is generally declining when the reading falls below 50.