Manufacturing activity in Singapore rose after contracting for six consecutive months, according to an industry survey that showed the country joining in a recovery in manufacturing globally, owing to increased orders for electronics., reports REUTERS.
The positive Singapore reading followed surveys published over the weekend, which showed US manufacturing growth quickening last month. Chinese factories extended a modest rebound.
According to the Singapore Institute of Purchasing & Materials Management (SIPMM), Singapore’s Purchasing Managers’ Index (PMI) rose to 50.2 points in January, up from 48.6 points in December, crossing the key 50-point level that separates expansion from contraction on a month-to-month basis.
A separate PMI for Singapore’s electronics sector also improved, with both the sub-indexes for new orders and new export orders for electronics turning positive in January and inventories rising for the fourth consecutive month and input prices for the second month.
Singapore has a trade around three times its GDP and was badly hit by the weakness in Western economies that stunted demand for its many exports.
According to data from the Economic Development Board last week, electronics manufacturers have also not been as successful in tapping surging demand for smartphones, unlike rivals in South Korea and Taiwan.