The private sector in Singapore experienced a downturn in January, as indicated by the latest survey from S&P Global released on Wednesday, reporting a Purchasing Managers' Index (PMI) reading of 49.9. This figure marks a decline from December's 51.5 and dips below the critical threshold of 50 that distinguishes expansion from contraction.
Survey participants frequently attributed the January slump to the resurgence of COVID-19 in Singapore, which adversely affected new business and overall company operations. For the first time in more than two years, new business volumes declined, albeit slightly, as underlying demand showed resilience, minimizing the adverse effects of the illness's spread.
Business activity saw a decline consistent with the reduction in new orders, concluding a two-year period of growth. Industry-specific data highlighted that while business activity diminished in sectors such as wholesale & retail, finance & insurance, and construction, there was an uptick in manufacturing, consumer services, transport, information & communication, as well as real estate & business services.
