Thursday, December 4

Factory output at 10-year low

Posted by at
Dec 2, 2008
Factory output at 10-year low
By Michelle Tay

AN INDEX regarded as an important early indicator of Singapore's factory output has plunged to the lowest level in its nearly 10-year history.

That means the current difficult manufacturing environment looks certain to continue, economists say.

Last month's Singapore Purchasing Managers' Index (PMI) fell to 44.3 points, down 1.5 points from October's figure, because of declining levels in new export orders, production output and employment.

This reading is the lowest since the index was launched in January 1999, said the Singapore Institute of Purchasing and Materials Management (SIPMM), which compiles the PMI numbers.

The PMI index is based on a poll of more than 150 purchasing executives at factories here, so it is considered a reliable early indicator of overall output.

An index figure below 50 indicates a contraction of manufacturing output, while a figure above 50 means expansion.

November was the third straight month that the PMI had shrunk - and this followed three months of expansion.

Economists now say there is 'no light at the end of tunnel any time soon' for manufacturers. They add that the figures are 'not unexpected', given the continuing uncertainty in the world economy.

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