PMI contracts to 49.7 in October

It dipped 0.2 points from September.

The Purchasing Managers' Index (PMI) continued to contract in October at 49.7, data from the Singapore Institute of Purchasing and Materials Management (SIPMM) showed.

Compared to last month, the PMI fell 0.2 points.

October marks the "second month of continued contraction" for the PMI, according to the SIPMM.

SIPMM attributed the decline in the PMI to the faster contraction in the key indexes of new orders, factory output and inventory.

Contraction in the three indices plus employment also dragged the Electronics Sector PMI by 0.3 points to 49.1.

"Global economic headwinds arising from the macroeconomic risks of high inflation and geopolitical uncertainties have continued into the final quarter of this year. These uncertainties in the global trade environment coupled with mounting cost pressures are weighing on demand despite the year-end festive seasons, and local manufacturers, in particular the electronics sector, have been scaling back investment plans," the SIPMM added