Factory activity falls in August, dashing manufacturing recovery hopes
Published on Sep 2, 2014 9:33 PM
SINGAPORE - Hopes that the downbeat manufacturing sector had turned a corner were dashed on Tuesday, with new figures showing that factory activity unexpectedly shrank in August in its worst showing this year.
The sector, which makes up a fifth of the economy, also fared worse in August than its regional peers due to economic restructuring and a sluggish global recovery, local economists said.
The Purchasing Managers' Index (PMI), a gauge of anticipated factory orders, fell on Tuesday to 49.7 for August, hitting its lowest point since December last year.
A reading above 50 signals expansion while one below 50 indicates contraction.
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