SINGAPORE – Manufacturing exercise grew for the seventeenth straight month in November however the tempo of growth was dampened by rising prices, famous information out on Thursday (Dec 2).
Analysts mentioned the brand new Covid-19 variant Omicron might have already began to hit enterprise sentiment amid fears it might add additional stress on pandemic-disrupted provide chains worldwide.
The November studying of the Singapore Buying Managers’ Index (PMI) was at 50.6, down 0.2 level from October, mentioned the Singapore Institute of Buying and Supplies Administration (SIPMM).
A studying above 50 signifies progress, whereas one under 50 represents contraction.
The electronics PMI in November additionally grew for a sixteenth straight month, however noticed a lower of 0.3 level from October to 50.8.
Indexes for separate sectors and processes throughout the manufacturing trade present enter costs have been rising steadily for over a yr, whereas order backlogs are mounting on the again of provide constraints, delivery delays and better freight charges and commodity costs.
Ms Sophia Poh, vice-president for trade engagement and growth at SIPMM, mentioned anecdotal proof means that native producers are adapting and coping properly with the associated fee pressures stemming from growing orders.
“Nevertheless, the brand new Omicron variant has raised fears of financial uncertainty, and producers are actually involved about extra restrictive measures and disruptive provide chains,” she added.
Ms Selena Ling, head of treasury analysis and technique at OCBC Financial institution, mentioned it’s nonetheless early days to determine Omicron’s impression and each manufacturing and electronics PMIs are nonetheless in growth territory, however tighter restrictions globally and domestically can’t be taken frivolously.
She added that if the brand new spherical of lockdowns persists and expands worldwide, provide chain disruptions might worsen, import prices might rise even greater and in the end harm prospects of general financial progress.
“So general, the rain clouds could also be gathering though it isn’t clear if will probably be a passing bathe or thunderstorm,” she mentioned.
Singapore’s PMI comes on the again of combined PMI information throughout Asia.
China’s manufacturing unit exercise fell again into contraction final month, the personal Caixin/Markit index confirmed on Dec 1, as mushy demand and elevated costs harm producers.
Past China, nevertheless, manufacturing unit exercise appeared to be on the mend, with PMIs exhibiting growth in nations together with Japan, South Korea, India, Vietnam and the Philippines.
