Private sector growth eases in January

Firms are becoming gloomy about their outlook.

For the first time in survey history, private firms are becoming gloomy about their production outlook, the Nikkei Singapore Purchasing Managers' Index showed.

According to the survey, PMI slowed to 51.6 in January from 52.0 in December. A reading above 50 indicates economic expansion, while a reading below 50 points toward contraction.

Bernard Aw, an economist at IHS Markit, which compiles the survey, said there were worrying developments in the survey results. "For the first time in the survey history, private sector businesses in Singapore expressed pessimism about their 12-month outlook for output because of slowing economic conditions," he said.

"Moreover, growth in export orders slowed markedly in January, which cast doubts on the recent strong growth numbers in official export data. If new business from abroad slows or even decline in the months ahead amid growing uncertainty about global trade policy, Singapore's economic growth could be affected."