According to the Singapore Institute of Purchasing & Materials Management (SIPMM), Singapore’s Purchasing Managers’ Index (PMI) published in December fell to a reading of 49.7, down from November’s figures of 50.8.
This was below initial the initial forecast of 51.1. Readings above 50 mean an expanding industry, while readings below 50 indicate contraction.
The PMI is “a key barometer of the Singapore manufacturing economy.”
According to the Business Times, this suggests a “soft start for industrial production this year.” It further added that “local manufacturers may not reap the full benefits of the global recovery due to structural domestic issues such as labour supply and costs.”
By comparison, Taiwan’s, South Korea’s and China’s indices were all above 50.
Photo credit: Bloomberg Singapore