PMI edges up to 49.9 in August

It increased by 0.1 points from July.

The Purchasing Managers' Index (PMI) had a slower contraction in August, improving by 0.1 points to 49.9.

The Singapore Institute of Purchasing and Materials Management (SIPMM) attributed the increase to “a slower contraction in the indexes of new orders, new exports, inventory, employment, and a reversal to expansion for factory output.”

Electronics PMI likewise improved by 0.2 points in August but remained in contraction territory at 49.5.

“The August PMI readings pointed to a silver lining in the overall manufacturing sector, as a trend of slower contraction readings has been developing since May this year. These improved PMI readings in recent months indicate possible recovery of the manufacturing sectors, despite several uncertainties in the macroeconomic environment and geopolitical development,” Stephen Poh, executive director of SIPMM.