SINGAPORE: Manufacturing activity in Singapore contracted for a second consecutive month in August as new orders declined further, in line with slowing output across Asia as demand weakens in Europe, United States and China.
Employment also shrank for the 14th straight month in the city-state, the latest Purchasing Manager's Index (PMI) showed on Tuesday, underscoring the weakness in the manufacturing sector.
Singapore's PMI stood at 49.1 points last month, falling from 49.8 in July and staying below the 50 level that separates expansion from contraction, the Singapore Institute of Purchasing & Materials Management (SIPMM) said.
On Monday, a private sector survey showed factory activity in China slowed to its lowest level in three-and-a-half years. Other Asian export powerhouses including South Korea and Taiwan have also reported a contraction in manufacturing.
"With global demand set to remain weak, we see little prospect of a strong recovery. However, policy loosening should prevent conditions from getting much worse," Capital Economics said in a commentary.
Singapore's trade-reliant economy shrank 0.7 per cent in the second quarter over the previous one on an annualised and seasonally adjusted basis and analysts have raised the prospect of a technical recession if external demand remained weak.
A technical recession is defined as two consecutive quarters of decline in gross domestic product. SIPMM said the sub-index for new orders fell to 48.1 in August from 49.6 in July, although the sub-index for new export orders edged higher to 50.4 from 50.2.
The employment sub-index came in at 48.5, down from July's 49.9. A separate PMI for the city-state's important electronics sector edged back into positive territory, rising to 50.7 from 49.2 in July, SIPMM said.
indiatimes.com
Employment also shrank for the 14th straight month in the city-state, the latest Purchasing Manager's Index (PMI) showed on Tuesday, underscoring the weakness in the manufacturing sector.
Singapore's PMI stood at 49.1 points last month, falling from 49.8 in July and staying below the 50 level that separates expansion from contraction, the Singapore Institute of Purchasing & Materials Management (SIPMM) said.
On Monday, a private sector survey showed factory activity in China slowed to its lowest level in three-and-a-half years. Other Asian export powerhouses including South Korea and Taiwan have also reported a contraction in manufacturing.
"With global demand set to remain weak, we see little prospect of a strong recovery. However, policy loosening should prevent conditions from getting much worse," Capital Economics said in a commentary.
Singapore's trade-reliant economy shrank 0.7 per cent in the second quarter over the previous one on an annualised and seasonally adjusted basis and analysts have raised the prospect of a technical recession if external demand remained weak.
A technical recession is defined as two consecutive quarters of decline in gross domestic product. SIPMM said the sub-index for new orders fell to 48.1 in August from 49.6 in July, although the sub-index for new export orders edged higher to 50.4 from 50.2.
The employment sub-index came in at 48.5, down from July's 49.9. A separate PMI for the city-state's important electronics sector edged back into positive territory, rising to 50.7 from 49.2 in July, SIPMM said.
indiatimes.com
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