Friday, April 5, 2013

Singapore manufacturing PMI turns positive in March

SINGAPORE: Manufacturing activity in Singapore recovered in March as orders expanded, reversing from a slowdown in February, as the city-state's factories continued to post a choppy performance.


The Purchasing Managers' index (PMI) rose to 50.6 points last month from 49.4 points in February, rising above the key 50-point level that separates expansion from contraction, the Singapore Institute of Purchasing & Materials Management (SIPMM) said on Wednesday.

"The increase in the overall PMI was attributed to further expansion in new orders," the institute said in a statement. SIPMM said sub-indexes for new export orders and production output turned positive in March after contracting in February, while the sub-index for employment stayed below the 50-point level for the second straight month.

A separate PMI for Singapore's electronics sector dipped slightly, falling to 51.9 points from 52.1 points in January although remaining in positive territory, the institute added, affirming the view held by many economists that the sector has bottomed out and will recover later this year.

Singapore's industrial output fell 8.6 percent in January and February compared with the first two months of 2012, hurt by a sharp drop in the production of electronics and pharmaceuticals.

But electronic exports rose month-on-month in February after adjusting for seasonal factors such as the Lunar New Year holidays falling in February this year and January last year, trade agency International Enterprise Singapore said.

The improvement in Singapore's manufacturing PMI for March is consistent with the global trend, as seen from the rise in the JPMorgan Global Manufacturing PMI to 51.2 in March from 50.9 in February.

Singapore, whose trade is around three times GDP, has been badly hit by the weakness in Western economies that has crimped demand for many of its exports.

Its electronics manufacturers have also not been as successful in tapping surging demand for smartphones as their rivals in South Korea and Taiwan, although investment in the sector remained healthy.

indiatimes.com

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