Manufacturing PMI hits highest reading in six years

It rose 0.3 point from last month to 52.9.

Singapore's purchasing managers index (PMI) hit the highest reading since December 2009 as it rose 0.3 point to 52.9 in November.

According to the Singapore Institute of Purchasing and Materials Management (SIPMM), the Singapore manufacturing PMI has recorded its 15th month of consecutive expansion.

The higher reading was attributed to a faster rate of expansion in most key indicators, except for the contraction in the supplier deliveries, which dropped to 49.3.

The manufacturing expansion was broad-based and across most sectors. Amongst key indicators, new orders which grew 54.1, output that expanded to 54.4, and new exports which hit 53.3, saw the fastest expansions.

The employment index for the manufacturing sectors recorded consecutive expansion for the third month at 50.9, which further indicates the robustness of the manufacturing sectors.

"The latest PMI readings suggest a continuing growth of the manufacturing sectors into the next year," SIPMM said.

Meanwhile, the electronics sector PMI rose 0.2 point to 53.5, marking the 16th month of consecutive expansion.

A reading of the Singapore 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 latest reading of the electronics sector was attributed to a faster rate of expansion in key indicators of the sector, except for a slower rate of expansion in electronics output.

Most indicators recorded faster rate of expansion except for electronics supplier deliveries which recorded a further contraction.

Anecdotal evidences of the survey suggest that most electronics manufacturers are more optimistic about continued growth of their businesses into the next year.