PMI shrinks for the third time in November

It inched up to 49.8 in November.

As the new exports index contracted at a faster rate, the Purchasing Managers’ Index (PMI) inched up 0.1 point to 49.8 in November 2022 from October’s 49.7.

But according to the Singapore Institute of Purchasing and Materials Management (SIPMM), the PMI in November marked the third month of continuous contraction.

“The latest PMI reading was attributed to a slower contraction in the key indexes of new orders, factory output and inventory. The new exports index contracted at a faster rate whereas the employment index recorded a marginally faster rate of expansion and has now expanded for 21 continuous months,” read the SIPMM report.

The electronics sector also inched up to 49.2 in November from October. The latest sector reading stemmed from a slower contraction in the key indexes of new orders, factory output, inventory and employment.

Sophia Poh, vice president at industry engagement and development in SIPMM, local manufacturers are less optimistic about the economic future in the first half of 2023 caused by weaker global demand and stringent health measures in China.