PMI inched up 0.3 points to 50.1 in December

Whilst, PMI for the electronics sector contracted by 0.2 points.

Singapore’s PMI has reversed the seven consecutive months of contraction in December as it rose 0.3 points to 50.1 from 49.8 in the previous month, according to a Singapore Institute of Purchasing and Materials Management (SIPMM) report.

The boost in the latest PMI reading was thanks to expansions recorded in the indexes of new orders, new exports, and employment, as well as faster rates of expansion in factory output and inventory and finished goods.

Slower expansion rates were seen in imports, input prices, and supplier deliveries. The order backlog index moderated from a one-time expansion in the previous month.

Meanwhile, the electronics sector PMI still posted a marginal contraction at 49.9, a 0.2 increase from November’s figure and has been continuous for the 14th month. This was attributed to slower contraction rates in the indexes of new orders, new exports, factory output, whilst inventory index showed a faster expansion rate.

Electronics employment also moderated for the eighth consecutive month. The finished goods index demonstrated a faster expansion rate, whilst imports, input prices, and supplier deliveries recorded slower expansion rates compared to November’s reading. The electronics order backlog index continued to contract for the 20th consecutive month.