Part of Singapore. Photo: NEO XIAOBIN

Singapore’s Purchasing Managers’ Index (PMI) fell to 49.3 in August, the second straight month the figure has fallen, marking the slowest pace since late 2012.

According to the Singapore Institute of Purchasing and Materials Management (SIPMM), the main reasons for the decrease were a consistent drop in new orders, export contracts and outputs while economists acknowledged the PMI in the reviewed period reflected weak manufacturing statistics from China, China’s Taiwan, the Republic of Korea, Malaysia and Indonesia.

Experts have warned that recovery prospects are small in the near future should service sectors fall to the same trend, and that the country could face technical recession in the third quarter of 2015.

Considered an important index to evaluate manufacturing activities and a leading economic index, the PMI is recapitulated from indexes of changes in production, number of new orders, occupation, supplier’s delivery and storage.

PMI above 50 points shows improved business conditions.-VNA