Manufacturing slips in January

MANUFACTURE    ECONOMY

Singapore - The manufacturing economy in Singapore contracted in January from the month before on lower orders and inventory.

The January reading of the Singapore Purchasing Managers' Index (PMI) posted a reading of 51.4, a decline of 1.9 points from December 2009.

A reading of above 50 on the index indicates general expansion, while a reading below 50 shows general contraction.

Decline in the overall PMI was attributed to lower new orders and new export orders, as well as lower levels in production output and inventory.

Stockholdings of finished goods eased, but overall imports and employment continued to expand and posted higher readings.

The overall input prices expanded for the first time after recording contraction in the previous month.

The electronics sector stood out, recording expansion for the third consecutive month. It stands at 53.8 in January, increasing 0.9 point over the previous month.

The readings indicated further growth in new orders from domestic and overseas markets. Electronics inventory, imports and employment continued to expand and posted higher readings.

Production output and stockholdings of finished goods posted lower readings, but continued to expand over three consecutive months.

Input prices continued to contract for the second consecutive month.

This PMI is published by the Singapore Institute of Purchasing and Materials Management.

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