The closely watched CIPS/Markit purchasing managers’ index (PMI) survey posted a reading of 52.7 in November – where 50 separates growth from contraction. The index for new export orders dropped 1 point on the month to 46.4, indicating weak external demand.
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The survey also signalled a slowdown in growth of output and new orders in the United Kingdom manufacturing sector between October and November. Deflationary pressures are as strong as ever, with the main raw materials purchase price index slipping 3.3 points to 41.1.
Global manufacturing growth remained tepid in November as new orders came in at a slower pace and factories ran down existing orders, a survey showed on Tuesday. The implication is that economic activity in the manufacturing sector contracted for the first time in 36 months.
China could ease some of the growth pressure by focusing on development of the manufacturing sectors that are in line with domestic consumption and upgrading of the nation’s industrial structure, the note from China Merchants Securities said.
This is the official measurement’s fourth straight month of contraction, taking the reading to a three-year low and fueling persistent concerns about sluggish growth in China despite a long series of stimulus measures, including six interest rate cuts since November 2014.
Production output and inventory continued to contract, although they both showed improvements in readings.
Singapore isn’t the only country suffering from deteriorating manufacturing output, in the face of economic weakness and depressed consumer demand globally.
Analysts are not expecting that the year-end festive season will provide some relief for Singapore’s struggling manufacturers.
The PMI for electronics edged higher to 49.0 in November, from 48.6 in October, the data showed.
China’s Caixin General Manufacturing PMI improved marginally to 48.6 in November, but was still below the 50 mark due to soft client demand.
“Asia’s economy looks decidedly wobbly going into year-end”.
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There was much better news out of Japan, where manufacturing firms, possibly aided by a weak yen, may be producing enough to lift the world’s third-largest economy out of recession.
