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is it that bad?
http://www.todayonline.com/Hotnews/EDC100903-0000113/Early-signs-of-a-slowdown?
SINGAPORE - Early signs of the expected slowdown in the Singapore economy may be on the horizon.
A slowdown in demand for electronics in key regions has caused the local manufacturing sector to snap a 15-month growth streak.
The Purchasing Managers' Index (PMI) showed that last month's manufacturing economy came in at 49.4 - a decline of 2.8 points over the previous month.
A reading above 50 indicates that the manufacturing economy is expanding, while a number below indicates a contraction.
Demand from the United States, China and Europe has been slipping in the last few months and factory output, especially for the electronics sector, has declined substantially, said Ms Janice Ong, executive director at the Singapore Institute of Purchasing and Materials Management (SIPMM), which releases the data every month.
"Hopefully, this one-time contraction in the overall PMI is only short-lived and demands from the foreign markets will pick up in the months ahead," Ms Ong said.
Overall, the PMI dropped due to a fall in overall new orders; new export orders; production output and employment. The employment index for August was 49.6 points, a drop of 2.9 points.
"Although the overall employment index reverted to contraction, the electronics employment index remains in expansion," said Ms Ong.
The Government's Jobs Credit Scheme had ceased in June and Ms Ong felt this may have affected staff retention.
The decline in last month's PMI comes as no surprise, said DBS economist Irvin Seah, noting that the wobbly US recovery and signs of a soft landing in Asian economies have resulted in weaker demand.
"Essentially, we'll see a gradual tapering off in manufacturing because of weaker demand," said Mr Seah.
Analysts dismiss the suggestion that the latest PMI foretells a potential double dip.
"We may be in for a stretch of slower growth, but the impact will not be a sharp contraction," said Mr David Cohen, Action Economics director of forecasting for Asia.
HSBC co-head for Asian Economics Frederic Neumann told Dow Jones the PMI numbers in Asian countries indicate growth normalisation - and not a start of another slump. The challenge for Asia, he said, is to maintain strong domestic demand amid the slow down in exports.
http://www.todayonline.com/Hotnews/EDC100903-0000113/Early-signs-of-a-slowdown?
SINGAPORE - Early signs of the expected slowdown in the Singapore economy may be on the horizon.
A slowdown in demand for electronics in key regions has caused the local manufacturing sector to snap a 15-month growth streak.
The Purchasing Managers' Index (PMI) showed that last month's manufacturing economy came in at 49.4 - a decline of 2.8 points over the previous month.
A reading above 50 indicates that the manufacturing economy is expanding, while a number below indicates a contraction.
Demand from the United States, China and Europe has been slipping in the last few months and factory output, especially for the electronics sector, has declined substantially, said Ms Janice Ong, executive director at the Singapore Institute of Purchasing and Materials Management (SIPMM), which releases the data every month.
"Hopefully, this one-time contraction in the overall PMI is only short-lived and demands from the foreign markets will pick up in the months ahead," Ms Ong said.
Overall, the PMI dropped due to a fall in overall new orders; new export orders; production output and employment. The employment index for August was 49.6 points, a drop of 2.9 points.
"Although the overall employment index reverted to contraction, the electronics employment index remains in expansion," said Ms Ong.
The Government's Jobs Credit Scheme had ceased in June and Ms Ong felt this may have affected staff retention.
The decline in last month's PMI comes as no surprise, said DBS economist Irvin Seah, noting that the wobbly US recovery and signs of a soft landing in Asian economies have resulted in weaker demand.
"Essentially, we'll see a gradual tapering off in manufacturing because of weaker demand," said Mr Seah.
Analysts dismiss the suggestion that the latest PMI foretells a potential double dip.
"We may be in for a stretch of slower growth, but the impact will not be a sharp contraction," said Mr David Cohen, Action Economics director of forecasting for Asia.
HSBC co-head for Asian Economics Frederic Neumann told Dow Jones the PMI numbers in Asian countries indicate growth normalisation - and not a start of another slump. The challenge for Asia, he said, is to maintain strong domestic demand amid the slow down in exports.
