The IHS Markit Singapore PMI increased to 51.0 in December 2019 from 50.4 in a month earlier. This was the second straight month of growth in private sector and the highest reading since July, as output grew the most in five months, and new orders picked up on the back of firmer domestic demand, new client wins and promotional activities. Buying activity, meanwhile, went up the most in a year, with some firms were reportedly stock building due to the improved trend in demand. Consequently, pre-production inventories rose for the first time since the end of 2018. At the same time, export sales fell sharply, amid external political issues, while employment shrank for the fourth month in a row, with backlogs rising at the fastest rate in eight months. Regarding inflation, both input costs and output prices went up at slower rates. Looking ahead, confidence slid to near three-year low. Composite Pmi in Singapore averaged 52.24 from 2013 until 2019, reaching an all time high of 56.80 in May of 2018 and a record low of 47.40 in October of 2019. source: Markit Economics
Composite Pmi in Singapore is expected to be 52.20 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Composite Pmi in Singapore to stand at 52.30 in 12 months time. In the long-term, the Singapore Private Sector PMI is projected to trend around 53.10 in 2020, according to our econometric models.