Singapore PMI down to 48.3 in September

This is the third straight time that the manufacturing economy has contracted after having previously recorded 9 months of continuous expansion.

The September reading of the Singapore Purchasing Managers’ Index, published by the Singapore Institute of Purchasing & Materials Management, indicated that the manufacturing economy contracted for the 3rd time after having previously recorded 9 months of continuous expansion. The PMI posted a reading of 48.3, which was a decline of 1.1 points over the previous month.

The decline in the overall PMI was attributed to further contraction in new orders and new export orders. Production output, inventory, stockholdings of finished goods and imports continued to contract as well. Whilst employment contracted for the 3rd consecutive month, input prices continued to expand for the 21st consecutive month after having contracted in the earlier month.

In the electronics sector, the index posted a further contraction at 47.2, which was a dip of 0.8 point over the previous month. It was the 3rd consecutive month of contraction for the sector. The readings indicated further decline in new orders from both the domestic and overseas markets. Production output, inventory, stockholdings of finished goods and imports continued to contract in the electronics sector. However, the dip was cushioned by further expansion in input prices as well as employment.