Oct 6, 2009
[COLOR="_______"]Manufacturing dips low[/COLOR]
Electronics sector falters; PMI comes very close to a contraction
By Robin Chan
The momentum in the electronics sector has been lost with the PMI falling a larger-than-expected 2.8 points last month. The effect of stimulus packages seems to be wearing off. -- ST FILE PHOTO
MANUFACTURING'S impressive rebound over recent months lost steam last month in the wake of weak export orders and a faltering electronics sector, as the effect of stimulus packages appears to be wearing off.
The monthly Purchasing Managers' Index (PMI), which tracks forward orders, fell 3.8 points from August to last month - a far larger fall than economists had expected.
The PMI came precariously close to a contraction, but recorded a reading of 50.6, indicating that factory output has expanded for the fifth consecutive month after contracting for eight straight months amid the global recession.
A reading above 50 indicates expansion, while one below 50 is a contraction.
The PMI was lower as the new export orders index recorded its first contraction since April, losing 3.6 points to 49.5 from August and the new orders index also lost 5.2 points to record a slight 50.6 expansion.
Momentum in the electronics sector was also lost, with the PMI falling by 2.8 points to 52.4 last month over August.
[COLOR="_______"]Manufacturing dips low[/COLOR]
Electronics sector falters; PMI comes very close to a contraction
By Robin Chan
The momentum in the electronics sector has been lost with the PMI falling a larger-than-expected 2.8 points last month. The effect of stimulus packages seems to be wearing off. -- ST FILE PHOTO
MANUFACTURING'S impressive rebound over recent months lost steam last month in the wake of weak export orders and a faltering electronics sector, as the effect of stimulus packages appears to be wearing off.
The monthly Purchasing Managers' Index (PMI), which tracks forward orders, fell 3.8 points from August to last month - a far larger fall than economists had expected.
The PMI came precariously close to a contraction, but recorded a reading of 50.6, indicating that factory output has expanded for the fifth consecutive month after contracting for eight straight months amid the global recession.
A reading above 50 indicates expansion, while one below 50 is a contraction.
The PMI was lower as the new export orders index recorded its first contraction since April, losing 3.6 points to 49.5 from August and the new orders index also lost 5.2 points to record a slight 50.6 expansion.
Momentum in the electronics sector was also lost, with the PMI falling by 2.8 points to 52.4 last month over August.
