S'pore manufacturing index down

S'pore manufacturing index down

SINGAPORE: A leading indicator of Singapore's manufacturing sector declined for the first time in 12 months on weaker demand, the Singapore Institute of Purchasing and Materials Management (SIPMM) said on Wednesday.

The Purchasing Managers' Index (PMI) for March fell 0.7 points over the previous month to 49.7 "on lower new orders, a contraction in new export orders, a further contraction in production output, as well as further contraction in employment," the SIPMM said.

A reading below 50 points shows that production in the island's manufacturing industry shrank.

In the electronics sector, which accounts for nearly half of the output in manufacturing, the index declined 1.4 points to 49.4, snapping a four-month expansion streak.

Manufacturing is a crucial pillar of the Singapore economy, accounting for almost a quarter of the island's gross domestic product.

The bulk of output from the sector is exported to the world's major economies, particularly to the United States and the March PMI reading will likely add to fears the island will be hit hard by the fallout from the war in Iraq and a killer respiratory virus sweeping across the world. -- AFP