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S’pore factory activity slips further into contraction in December

SINGAPORE –  Factory activity in Singapore dipped in December from the previous month for a fourth straight month of contraction as global demand for manufactured goods continues to weaken.

The purchasing managers’ index (PMI) – a key indicator of trends in the sector – came in at 49.7 in December, down 0.1 point from November.

It was attributed to a faster contraction in the key indexes of new orders, new exports, factory output and inventory.

A reading over 50 indicates expansion; one below that points to contraction.

The global economy is experiencing a slowdown in the wake of rising inflation, higher interest rates and uncertainties from geopolitical developments.

The electronics sector PMI dipped 0.3 point from November to 48.9 – the fifth month of decline after two years of continuous expansion.

OCBC Bank chief economist Selena Ling said the combination of sharper contractions in new orders, new export orders,…

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