SINGAPORE, Jan. 6 (Xinhua) -- Singapore's private sector growth moderated in December, with the seasonally adjusted Purchasing Manager's Index (PMI) easing to 51.5 from 53.9 in November, according to a report by S&P Global published on Monday.
While a PMI above 50 signals expansion, December's figure marks the 22nd consecutive month of improved business conditions in the private sector, albeit at the slowest pace since July 2023, the report said.
The report noted that business activity expanded modestly in December, registering the softest growth in 22 months. This slowdown aligned with the trend in new business growth, which decelerated to its weakest since February 2023.
Although Singaporean businesses generally saw improved demand, some sectors faced a downturn in December. The finance and insurance sector reported the fastest growth in new business, while manufacturers and construction firms experienced notable declines, it said.
Despite an uptick in business confidence, firms remained cautious, scaling back purchasing activity and inventory levels. Employment also saw a reduction for the first time since April 2024.
"Whilst still above average, selling price inflation notably eased at the end of 2024, falling to the lowest in six months, which will be supportive for sales," said Jingyi Pan, economics associate director at S&P Global Market Intelligence.
In a separate report, the Singapore Institute of Purchasing and Materials Management revealed on Thursday that the country's manufacturing PMI rose by 0.1 points in December to 51.1, marking 16 consecutive months of expansion. ■
