PMI contracts to 49.9 in September

It dipped by 0.1 points from August.

The Purchasing Managers' Index (PMI) contracted in September to 49.9, data from the Singapore Institute of Purchasing and Materials Management (SIPMM) showed. Compared to last month, the PMI dipped by 0.1 points.

September marks the "first-time contraction for the overall manufacturing PMI after 26 consecutive months of expansion," according to the SIPMM.

The decline in the PMI was attributed to the contraction in the electronics sector, which decreased by 0.2 points to 49.4.

SIPMM said the decline in the overall PMI could also be due to a "faster contraction in the key indexes of new orders, new exports, factory output, and a contraction in the employment index."

"Global markets are still grappling with the macroeconomic risks of high inflation and quantitative tightening, as well as the geopolitical uncertainties of the continuing Russo-Ukrainian war.," the SIPMM added.