PMI rose 0.2 points to 49.8 in November

Factory output and inventory sped up in expansion.

The contraction in the manufacturing sector eased further in its seventh month as the Purchasing Managers’ Index (PMI) edged up 0.2 point MoM at 49.8, according to data from the Singapore Institute of Purchasing & Materials Management (SIPMM).

Also read: PMI edges up 0.1 point to 49.6 in October

The reading was buoyed by faster rates of expansion in both factory output and inventory, which rose to 50.2 and 50.3 respectively. New orders (49.9), new exports (49.8), and employment (49.6) also recorded slower rates of contraction.

The indexes of both imports and input prices also expanded faster, although those of finished goods and supplier deliveries slowed in expansion. The order backlog index reversed to an expansion after recording contraction for 13 consecutive months.

The electronics sector contracted for the 13th month but likewise eased, with its PMI rising by 0.4 point MoM to 49.7. This was attributed to slower contraction rates in new orders (49.7), new exports (49.6), factory output, and employment, as well as a faster expansion rate in inventory.

The indexes of both finished goods and supplier deliveries recorded slower rates of expansion, whereas faster rates of expansion were recorded in the indexes of both imports and input prices. The electronics order backlog index has now recorded contraction for 19 continuous months.