Manufacturing sector weakens further
Post Date: 06 Sep 2011 Viewed: 507
The Purchasing Managers Index (PMI) posted a reading of 49.4 last month, up 0.1 point from July but still below the 50 point mark, indicating that the manufacturing sector contracted for the second straight month after having previously recorded nine months of continuous expansion.
The Singapore Institute of Purchasing and Materials Management (SIPMM) said the contraction was mainly due to a decline in new orders and new export orders.
The employment index posted a reading of 49.3 last month after it fell to 49 in July from 50.7 in June. The SIPMM said that anecdotal evidence from the latest survey suggested that companies were adopting a "wait-and-see" strategy and, at the same time, hiring less in the face of global uncertainties.
Still, Ms Janice Ong, executive director of SIPMM, said: "If global demand could show some significant improvement, I would expect the overall employment index to revert to expansion in the coming months."
Meanwhile, the key electronics sector recorded further contraction to 48.0, a decline of 1.5 points from the previous month.
The input price index dipped 0.8 point to 51.2. Ms Ong said that higher input prices continued to pose a strain on manufacturers in their management of raw material costs.