The private sector in Singapore continued to expand in December, and at a faster rate, the latest survey from Markit Economics showed on Wednesday with a PMI score of 55.1.
That’s up from 52.0 in November and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.
Both demand and output grew at the quickest pace in five months. Purchasing activity increased once again, though employment levels remained subdued, affected by COVID-19 disruptions. Supply constraints, including longer lead times, continued to be reported, leading to a record rise in backlogged work. Price pressures likewise mounted, while output expectations improved.
Higher new orders and output led to a renewal of buying activity growth in December with panelists also highlighting the need for safety stock building. The overall level of stocks of purchases continued to fall, however, amid delivery delays.