Illustrative image (Photo: AFP/VNA) Singapore’s Purchasing Managers’ Index (PMI) fell to 48.6 in September, the lowest reading since December 2012.
This was the third straight month Singapore’s PMI sank to below 50, an indication of a contraction in factory activity.
The Singapore Institute of Purchasing and Materials Management said contributing factors to the drag included declines in new orders and production output along with inventory expansions.
Economists said the chance of a technical recession for the third quarter is relatively high, which could hamper Singapore’s ability to meet its growth targets this year.
They added that Singapore probably is facing a double-sided compound from lacklustre external demand and domestic constraints from higher costs, tight manpower supply and decreasing production competitiveness.
The PMIs for China, the Republic of Korea and Malaysia also decreased but there were some stabilisations and improvements. Indonesia, India and Vietnam also reported weaker September PMIs compared to the previous month.-VNA
