Singapore's Economy PMI at 49.9 In September 2022

The Purchasing Managers' Index (PMI) for the manufacturing sector in The United States, The United Kingdom and Singapore hovered around the 50.0 benchmark line of the index in September triggering concerns about economic development. PMI is one of the leading indicators commonly used in the world to monitor macroeconomic trends with 50.0 as the benchmark line. A reading above 50 indicates expansion while a reading below reflects contraction.

According to the latest data released on Monday (2/10/2022) by the institute for supply management. The US manufacturing PMI in September came in at 50.9 down from 52.8 in the previous month. The institute also said that US manufacturing employment index stood at 48,7 % in September while the new order index for the manufacturing sector was 47.1 percent for the month. The monthly survey released on Monday by the standard and poor's global reported a 48.4 % of manufacturing PMI in UK in September 2022.

Although the number increased from 47.3 % in August it is still below the benchmark line. The number indicated that UK's manufacturing sector continued to slump at the end of the third quarter of the year which would weigh on the country's gross domestic product growth.

Analysis said that due to factors such as falling overseas demand and higher transportation costs the country's manufacturing output fell for the third month in a row and orders fell for the fourth consecutive month. According to the latest data released on Monday by the Singapore institute of materials management Singapore’s pmi was 49.9 in September which is the first time since July 2020 that the country's PMI fell into contraction.

Analysts said that a weak manufacturing sector would hold back Singapore's economic growth in the third quarter raising concerns about a technical recession defined as two consecutive quarters of negative growth.