PMI edges up 0.1 point to 49.6 in October

The reading was attributed to a boost in factory outputs.

The overall manufacturing sector recorded a slower rate of contraction with the Purchasing Managers’ Index (PMI) climbing 0.1 point MoM to 49.6 in October, according to the Singapore Institute of Purchasing and Materials Management (SIPMM). This is the sixth month of contraction recorded by the sector.

Also read: PMI falls to three-year low in September

The reading was attributed to a boost in factory output index that reverted to an expansion to 50.1 from 49.9 from the previous month, as well as a faster expansion in inventory and a slower contraction in employment.

This was however dragged down by weakening in new orders and new exports. The new orders index was at its lowest since August 2016 at 49.7, and the new exports index dipped to 49.4 from 49.7 from the previous month.

The indexes for imports, input prices, finished goods, and supplier deliveries posted faster rates of expansion. However, the order backlog index contracted for the 13th month

The electronics sector recorded its 12th month of contraction, although the PMI rose 0.2 point MoM to 49.3.

This was attributed to slower contraction amongst indices for new orders, factory output, and employment, as well as a faster expansion in inventory. Indices of finished goods, imports, and input prices saw faster expansion rates.

However, supplier deliveries slowed in expansion, whilst new exports and order backlog further contracted. The electronics order backlog index posted contraction for 18 months straight.