Don't count on a manufacturing rebound this September

Output weakness will persist based on August's mellow manufacturing PMI, says Maybank.

"Singapore’s manufacturing purchasing managers index (PMI) – a short-term gauge on activity – recorded below-50 reading for the second consecutive month in Aug 2012 of 49.1, down from 49.8 in July 2012, suggesting further weakness in IP for Sep 2012," says Maybank Kim Eng in a research report.

Maybank also concurred with growing concerns of a Q3 technical recession for SIngapore on the back of faltering industrial output.

"IP in Jul-Aug 2012 contracted -1.4% versus Apr-May 2012, hinting at potentially another quarter of real GDP contraction in 3Q 2013, given that Singapore economy shrank at an annual rate of -0.7% QoQ in 2Q 2012 although IP was up 3.5% QoQ last quarter," it added.