Singapore's whole economy PMI rebounded strongly in August, the fourth consecutive monthly improvement. Data released by IHS Markit, the financial information services provider which compiles the index showed Singapore's headline Nikkei purchasing managers' index (PMI) rising to 52.3 from July's 50.7.
Singapore firms posted an improvement in operating conditions in August. Both output and new orders rose further and at faster rates than in the previous month. Stronger overall demand and a "solid accumulation of outstanding work" led firms to increase their headcounts for the first time in six months. It was the strongest rise in total new work for nearly a year-and-a-half.
Details of the report showed that the upturn in total new work was largely driven by improved domestic demand, as new export business fell for the sixth month in a row, weighed by challenging global economic conditions. IHS Markit forecasts a 1.7 percent expansion in Singapore GDP in 2016.
"The domestic labour market is showing signs of softening, and caution may start to re-emerge on the consumer confidence front ahead of any Fed rate hike prospects for the remainder of this year." notes Kelvin Ang, OCBC Economist.
