Singapore’s manufacturing sector expanded for the 16th consecutive month in December, but the pace of expansion slowed as new orders and new exports for the electronics sector eased.
The Purchasing Managers’ Index (PMI) – an early indicator of manufacturing activity – came in at 52.8 according to data released by the Singapore Institute of Purchasing and Materials Management (SIPMM) on Wednesday (Jan 3).
This is a dip of 0.1 point from November’s near eight-year high.
“The Singapore manufacturing PMI has recorded its 16th month of consecutive expansion … This latest December PMI reading capped a year of strong growth for the manufacturing sectors,” SIPMM said.
A PMI reading above 50 indicates that the manufacturing economy is expanding, while a reading below 50 indicates that it is declining.
The institute attributed the marginally lower reading to a slower rate of expansion in factory output and inventory. New orders, new exports and employment saw a slightly faster rate of expansion, it said.
The electronics sector PMI recorded a drop of 0.3 point from the previous month to post a slower expansion reading at 53.2 in December.
This was the sector’s 17th month of consecutive expansion, on the back of slower rate of expansion in new orders, new exports, factory output, inventory and employment.
“Despite a slower expansion rate, anecdotal evidences suggest that electronics manufacturers are cautiously optimistic of continued growth for the electronics sector in the new year,” SIPMM said.
Source: Channel NewsAsia