Singapore: PMI points to manufacturing contraction in August
September 3, 2014
In August, the manufacturing PMI produced by the Singapore Institute of Purchasing & Materials Management (SIPMM) fell from 51.5 points in July to 49.7 points. The figure undershot market expectations of the index inching down to 51.0 points and represented the lowest level in eight months. This is the first time that the index has fallen below the 50-threshold, indicating contraction in the manufacturing sector, after seven consecutive months in expansion territory. Most of the sub-indices that comprise the PMI index in August recorded deteriorations over the previous month. The largest decreases were recorded in the employment and output sub-indices.
The electronics PMI also deteriorated over the previous month. The index fell from 52.4 points in July to 50.7 points in August. The figure undershot the 51.9 points the market had expected.
Author: Dirina Mançellari, Senior Economist