PMI hits seven-year high at 53.1 in January

Thanks to the faster expansion of factory output and new orders.

The Singapore Purchasing Managers' Index (PMI) went up 0.3 ppt from December's figure to 53.1, implying an expansion, the Singapore Institute of Purchasing & Materials Management (SIPMM) revealed.

According to its monthly bulletin, this is the highest reading since December 2009, when the reading recorded 53.3. The Singapore manufacturing PMI has recorded its 17th month of consecutive expansion.

The improved reading was attributed to a faster rate of expansion in factory output, new orders, new exports, and inventory.

A reading of the PMI above 50 indicates that the manufacturing economy is generally expanding and that the economy is generally declining when the reading falls below 50.

Here's more from SIPMM:

The indicators of both employment and input prices recorded slower rate of expansion, whereas imports, stocks of finished goods, and order backlog recorded faster rate of expansion.

The supplier deliveries index continued to contract for the fourth consecutive month. This latest PMI reading marked a good start of the year for the manufacturing sectors, which was boosted by the non-electronics sectors.