Singapore PMI contracts for 7th straight month in Jan

SINGAPORE, Feb 1 (Reuters) - Singapore's manufacturing
sector contracted for a seventh straight month in January as
orders continued to shrink, a business survey showed on
Wednesday, adding to pessimism about the city-state's economic
outlook.
The Purchasing Manager's Index (PMI) for January stood at
48.7 points, down from December's 49.5, the Singapore Institute
of Purchasing & Materials Management (SIPMM) said. Readings
below the key 50-point level indicate a contraction in activity.
A separate PMI for the electronics sector rose to 50.5 from
December's 49.7 due to domestic and overseas order expansions,
SIPMM reported.
Asia's factories have been hit by weak demand in the West,
particularly from Europe, although there are signs the sector is
beginning to bottom.
China's official PMI, released earlier Wednesday, showed
factory sector expanded slightly in January, confounding
expectations for a contraction and supporting hopes the world's
second-biggest economy will avoid a hard landing.

Taiwan saw an eighth straight month of contraction, but its
January PMI edged up to 48.9 from 47.1 in December.

Singapore's trade-driven economy contracted in the last
three months of 2011, and several economists predict the economy
will sink into a recession this quarter as global demand
sputters.
A survey by the city-state's Economic Development Board
(EDB) released on Tuesday showed manufacturers have become more
pessimistic about prospects compared with three months ago.

SINGAPORE OVERALL PMI
Jan Dec Nov Oct Sep Aug Jul Jun May
48.7 49.5 48.7 49.5 48.3 49.4 49.3 50.4 50.8

Electronics Index
50.5 49.7 50.9 52.1 47.2 48.0 49.5 50.9 51.4

New Export Orders Index
49.0 49.5 47.3 46.8 47.6 48.7 49.1 49.3 51.4

CONTEXT:
- Singapore's PMI is produced ahead of government data on
manufacturing and exports.
- The dip in the overall PMI was due to declines in new
orders, new export orders, inventory, input prices and
employment. There were, however, increases in production and the
stock of finished goods.
- For more PMI reports from around the world, see

(Reporting By Mark Tay; Editing by Kevin Lim & Kim Coghill)