Singapore's PMIs for January will add more pain

Singapore's PMIs for January will add more salt to wound. The headline is likely to remain below the crucial 50 level, which shows that the manufacturing sector is still in contraction mode. This will be the seventh consecutive months of decline and will add on to an already dire streak poor data. But this shouldn't come as a surprise.

The PMIs of most key markets have remained stuck in the contraction territory while the US SEMI book-to-bill ratio is reflecting a down-cycle in the electronics industry. The global demand remains weak amid a challenging external environment. Such phenomenon has already been manifested in disappointing export and industrial production figures in recent months. 

Although historically manufacturers will front-load their orders ahead of the Lunar New Year, chance is high than this festive season will be a relatively quiet one. The cold spell that hit many parts of Asia will likely dampen consumer spending as well as industrial activity. This will have a knock-on impact on Singapore's PMIs within these few months.