Chart of the Day: This graph gives Singapore hopes of a recovery in manufacturing sector

All thanks to global improvement.

According to CIMB, Singapore’s factories were not particularly busy in 4Q13, if the monthly PMI readings were any guide.

The PMI had recovered 0.7 pts to 51.2 in Oct, its highest reading in three months, but dipped 0.4 pts in Nov and a further 1.1 pts in Dec on the back of lower orders and output to 49.7 pts (consensus and CIMB forecasts: 51.1 and 51.2, respectively).

Here's more from CIMB:

Globally, the manufacturing picture continues to improve. Dec’s global PMI rose another 0.2 pts, the sixth consecutive month of sequential expansion, to

53.3 pts, the highest reading since Apr 11’s 55.0. However, it was an uneven showing. While the US reading dipped slightly (-0.3 pts to 57.0, the first sequential dip after six consecutive months of gains), the euro-zone PMI continued gaining (+1.1 pts to 52.7, the third consecutive month of gains), with the weaker France (-1.4 pts) offset by the stronger Germany (+1.6 pts), Italy (+1.9 pts) and Spain (+2.2 pts).

Here in Asia, the Dec PMI reading for China (-0.4 pts to 51.0), Hong Kong (-0.9 pts to 51.2), and India (-0.6 pts to 50.7) all dipped. On the other hand, the PMI for Japan (+0.1 pt to 55.2), South Korea (+0.4 pts to 50.8), and Taiwan (+1.8 pts to 55.2) all gained.

The PMI readings for Indonesia and Vietnam likewise rose last month but given their respective short history, we are not putting as much weight on their PMI readings as we do other countries with a longer history.

Taken together, the global picture does appear to be improving. Fingers crossed, Singapore’s manufacturing will catch up when the global demand strengthens further.