Singapore Manufacturing Activity Contracted for Third Straight Month in November

By Clarence Leong

Singapore's manufacturing activity contracted in November, but improved from the previous month, mainly owing to a slower contraction in new orders, factory output and inventory.

The city-state's purchasing managers index rose to 49.8 in November from 49.7 in October, the Singapore Institute of Purchasing and Materials Management said Friday. The November reading marked the third straight month of contraction. A PMI reading below 50 indicates a contraction.

"The weaker global demand and China's Covid-19 containment measures are weighing on domestic demand despite the year-end festive seasons, although there was some respite from lower cost pressures on local manufacturers," said Sophia Poh, vice-president of industry engagement and development at SIPMM.

"Anecdotal evidences suggest that local manufacturers are less optimistic of the economic outlook going forward into the first half of next year," she added.

The PMI for electronics, which accounts for about a third of Singapore's manufacturing, increased to 49.2 in November from 49.1 in October.

Write to Clarence Leong at [e-mail]

(END) Dow Jones Newswires

12-02-22 0814ET