The Republic’s manufacturing economy shrank for the 13th straight month, according to the figures from the Singapore Institute of Purchasing and Materials Management (SIPMM) on Tuesday (Aug 2).
The July reading for the Singapore Purchasing Managers’ Index (PMI) came in at 49.3, down 0.3 point from the previous month. This was mainly due to lower new orders and new exports.
A reading above 50 indicates that the manufacturing economy is expanding, while a reading below 50 generally means a decline.
Meanwhile, the electronics PMI showed a slowing rate of contraction, up 0.7 point from the previous month to 49.7.
One economist said the regional manufacturing outlook appears to be mixed as external demand continues to weigh on the region.
“China is actually a good leading indicator, given our economic relationship,” said Mr Edward Lee, regional head of research for Southeast Asia at Standard Chartered Bank. “It has been above 50 but not hugely above 50. Recently, it dipped below 50 again for its manufacturing PMI, suggesting that the overall economic demand, economic activity remains just at about the 50 sort of level. So not very strong at all and more on the weak side actually. I think this is a reflection of global demand.”
Source: Channel News Asia