More gloom ahead for manufacturing sector as December PMI dips into the red

The headline number slipped to 49.6.

It seems that a prosperous new year will be elusive for the country’s struggling manufacturers. Singapore’s manufacturing purchasing managers’ index (PMI) dipped into the red in December after two consecutive months of expansion.

The December figure clocked in at 49.6, down from 51.8 in the previous month and 51.9 in October. Readings above 50 indicate and expansion and vice-versa.

According to DBS, the headline number shows that the extra boost on production due to spikes in festive season orders between October and November has dissipated.

“As a result, production output reversed amid an otherwise sluggish global outlook. Even after adjusting for the seasonal effect, PMI is still down,” the report stated.

DBS noted that there is more gloom in store for the manufacturing sector as the growth outlooks of Singapore’s three biggest trading partners--China, the Eurozone, and Japan--remained dicey.