Singapore’s manufacturing activity continued to expand for the fourth consecutive month in December, indicating strengthening recovery in the sector.

According to the Singapore Institute of Purchasing and Materials Management, the purchasing managers index (PMI) increased to 50.5 in December from 50.3 in November. This growth can be attributed to faster expansion in new orders, new exports, factory output, and input purchases. However, there was a slight slowdown in employment growth. It is important to note that a PMI reading above 50 indicates expansion, while below 50 signals contraction.

Stephen Poh, executive director at SIPMM, expressed optimism about the manufacturing sector’s prospects for the new year. Despite the macroeconomic risks and geopolitical uncertainties faced by major economies, Poh believes that local manufacturers maintain a cautious but positive outlook for a strong recovery. He specifically highlighted the electronics sector, which is experiencing an upward trend in global electronics demand.

The PMI for electronics, accounting for approximately one-third of Singapore’s manufacturing activity, rose to 50.2 in December from 50.1 in November.

Overall, the strong PMI readings are encouraging for Singapore’s manufacturing sector as it enters the new year. The outlook remains positive, though caution is advised due to various external factors affecting global economies.

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