The Singapore purchasing managers’ index (PMI), an early indicator of manufacturing activity, dipped 0.2 points from the previous month to post the second month of continued contraction at 49.7.
The latest PMI reading was attributed to a faster contraction in the key indexes of new orders, factory output, and inventory, the Singapore Institute of Purchasing and Materials Management (SIPMM) which publishes the Singapore Purchasing Managers’ Index on a monthly basis, said on Wednesday, Xinhua reported.
Singapore’s electronics sector PMI decreased by 0.3 points from September to post a further contraction at 49.1 in October. This is the third consecutive month of contraction for the electronics sector. The sector reading was attributed to a faster contraction in the key indexes of new orders, new exports, factory output, inventory, and employment.
Sophia Poh, vice president of industry engagement and development at SIPMM, said that global economic headwinds arising from the macroeconomic risks of high inflation and geopolitical uncertainties have continued into the final quarter of this year.
“These uncertainties in the global trade environment coupled with mounting cost pressures are weighing on demand despite the year-end festive season, and local manufacturers, in particular the electronics sector, have been scaling back investment plans,” she added.
