Mon, 28 Nov 2022

SINGAPORE, Oct. 3 (Xinhua) -- The purchasing managers' index (PMI), an early indicator of manufacturing activity, dipped 0.1 points in Singapore from the previous month to post a marginal contraction at 49.9.

This is a first-time contraction for the overall manufacturing PMI after 26 consecutive months of expansion, the Singapore Institute of Purchasing and Materials Management (SIPMM), which publishes the PMI on a monthly basis, said on Monday.

Singapore's electronics sector PMI decreased by 0.2 points from August to 49.4 in September. This is the second month of contraction for the electronics sector.

Sophia Poh, vice president of industry engagement and development at SIPMM, said that the overall manufacturing sector ended the third quarter with a slight drop, amid continuing contraction in the electronics sector.

Global markets are still grappling with the macroeconomic risks of high inflation and quantitative tightening, as well as geopolitical uncertainties, she added.

The Straits Times quoted Chua Hak Bin, head of research at Maybank, as saying that the contraction in electronics manufacturing on the back of slumping global demand will depress economic growth.

He said the upcoming third-quarter GDP estimate by the Ministry of Trade and Industry may show Singapore's GDP growth shrinking 0.6 percent on a seasonally adjusted quarter-on-quarter basis, after a 0.2-percent contraction in the second quarter. This implies the economy of Singapore is in a technical recession.

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