Singapore’s December manufacturing PMI was down 0.7 points to 50.7 vs November’s 51.4; but the figure still reflects expansion and is unlikely to hurt 4Q GDP numbers.

The electronics PMI reported a second straight month of expansion, though the reading eased to 52.2 in December vs 53.2 in November. A reading above 50 in the PMI data indicates growth in manufacturing activity, while a reading below 50 indicates contraction. 

 

“The global picture is still of manufacturing on an upswing as we move into the new year. Japanese manufacturing data are looking a little better and PMIs across Asia are comfortably expansionary. Nobody is concerned about a month of lower Singapore PMI as the global outlook is looking better,” said David Cohen, the director of Asian economic forecasting at Action Economics. 

 

On Monday, Singapore reported preliminary 4Q GDP estimates of a 6.9% on-quarter rise in seasonally-adjusted and annualized terms rounding out a record 14.7% growth in 2010.