Singapore's manufacturing sector contracted for the 7th straight month in January 2012. The latest reading of the Purchasing Managers' Index (PMI) fell to 48.7 in January, 0.8 points lower than the previous month's 49.5.

A reading above 50 indicates that the economy is growing, while a reading below 50 shows that the economy is generally contracting.

Singapore Institute of Purchasing and Materials Management (SIPMM) reported that companies cleared their stocks at very low prices and their survey indicated weaker imports data despite declining input prices. Overall, the contraction was attributed to a further slowdown in new orders and production output.

However, the electronics sector PMI was at 50.5, up by 0.8 from the previous month. This was due to an increase in new electronics orders from domestic and overseas markets.

SIPMM reported that prospects for a sustained turnaround in PMI remain weak due to economic uncertainties in Europe and the United States.