Local manufacturers downbeat as new orders crashed in Q4

Confidence levels contracted for the first time since 2012.

Local manufacturers are pessimistic on their business prospects for the fourth quarter of the year, as business confidence fell into the contractionary region for the first time since Q1 2012 from +14.0 percentage points in Q3 to -13.04 percentage points in Q4.

According to the Singapore Commercial Credit Bureau, new orders for the manufacturing industry are expected to dive into the contractionary region from net +14.0% in Q3 2014 to net -13.04% in Q4. 

This reflects the Singapore Institute of Purchasing & Materials Management’s revelation that the local Purchasing Managers’ Index (PMI) fell below the 50 mark in August, registering a reading of 49.7.

Meanwhile, the services industry took a tumble from the top to become the fourth most optimistic sector, with all five business indicators moderating downwards. The SCCB notes that this is due largely to a fall in tourist arrivals in light of the recent spate of aviation disasters.