Singapore’s purchasing managers’ index, a leading indicator for manufacturing, continued to inch up in April amid new export orders, signalling the potential end of an eight-month long contraction might be coming.
The Singapore Institute of Purchasing & Materials Management said on Tuesday its purchasing managers’ index stood at 49.2 in April, a steady climb from 47.1 in March and 45.0 in February.
A reading below 50 points indicates that the manufacturing sector is contracting.
Singapore’s key electronics industry reverted to expansion in April at a reading of 51.6 from 48.8 in March, after six straight months of contraction, a sign of a recovery in a sector that accounts for a third of the country’s manufacturing output.
China’s manufacturing sector posted its best performance in nine months in April, a private sector survey showed on Monday, offering further evidence the global economy may be picking up from its sharpest slump in six decades.
Singapore, whose exports are seen as a barometer for world demand, was the first Asian country to fall into recession in 2008, followed by Hong Kong, Japan and Taiwan. Its exports fell 17 percent in March from a year ago, slower than a record 35 percent fall in January.
Purchasing managers’ Index and components:
April 09 March 09 February 09 Purchasing managers index 49.2 47.1 45.0 Electronics sector 51.6 48.8 43.8
The indices are based on data compiled from monthly replies to questions asked of purchasing executives in more than 150 industrial companies.
The survey is based on 12 industry groupings and weighted by each industry’s contribution to gross domestic product.
Survey responses reflect the change, if any, in the reporting month compared with the previous month.
The Purchasing managers’ Index is a composite index based on the diffusion indices of leading market indicators, with varying weights applied.