Signs of Slowing Singapore's Economy -PMI

[shazamnick]

Comparing to US and China's PMI for the mth of July, Singapore is worst off to two giants!!! A sign of contracting economy!! Do you still wish to go ahead and buy your sky-high property!!!

Reuters
Tuesday, Aug 02, 2011

SINGAPORE - Singapore's manufacturing shrank for the first time in 10 months in July as companies received fewer orders and kept lower levels of inventory, the Singapore Institute of Purchasing & Materials Management said on Tuesday.

The institute's July Purchasing Managers' Index (PMI) fell to 49.3 points from June's 50.4 points, with the sub-indexes for new orders, new export orders and stocks of finished goods index falling further into negative territory.

A reading above 50 in the PMI indicates manufacturing activity is expanding while a reading below that level shows a contraction.

The inventory sub-index declined but remained above the 50 point level while the employment sub-index turned negative.

A separate PMI for Singapore's electronics sector fell to 49.5 points from June's 50.9 after eight months of expansion due to fewer orders.

The weakness in Singapore's PMI readings come amid signs of a slowdown in global manufacturing, with the United States, Europe and China reporting weaker production activity this week.

On Monday, the US Institute for Supply Management manufacturing report fell to 50.9 in July, which was its lowest level in two years.

The euro zone manufacturing PMI registered its worst reading since September 2009, while China's official government PMI dropped to its weakest in more than two years.

[Dennis Ng]

In terms of economy, Singapore economy probably already peaks, so it's 3 'O Clock in Investment Clock for Singapore. I'm still holding on to my stocks becos of the expected QE3. If not, now is time to Sell.

Of course, property market and prices might go up a little further, say by 10% before market peaks, but only God can know exactly when market peaks, human beings cannot.

Cheers!

Dennis Ng

Comparing to US and China's PMI for the mth of July, Singapore is worst off to two giants!!! A sign of contracting economy!! Do you still wish to go ahead and buy your sky-high property!!!

Reuters
Tuesday, Aug 02, 2011

SINGAPORE - Singapore's manufacturing shrank for the first time in 10 months in July as companies received fewer orders and kept lower levels of inventory, the Singapore Institute of Purchasing & Materials Management said on Tuesday.

The institute's July Purchasing Managers' Index (PMI) fell to 49.3 points from June's 50.4 points, with the sub-indexes for new orders, new export orders and stocks of finished goods index falling further into negative territory.

A reading above 50 in the PMI indicates manufacturing activity is expanding while a reading below that level shows a contraction.

The inventory sub-index declined but remained above the 50 point level while the employment sub-index turned negative.

A separate PMI for Singapore's electronics sector fell to 49.5 points from June's 50.9 after eight months of expansion due to fewer orders.

The weakness in Singapore's PMI readings come amid signs of a slowdown in global manufacturing, with the United States, Europe and China reporting weaker production activity this week.

On Monday, the US Institute for Supply Management manufacturing report fell to 50.9 in July, which was its lowest level in two years.

The euro zone manufacturing PMI registered its worst reading since September 2009, while China's official government PMI dropped to its weakest in more than two years.

[smarthsf]

Hi Dennis,

I have bought the PruCash in 2005, Maturity Date is 2029. It is giving me 2.5% upon maturity.
It is a wise choice to hold on to it. Every month I am payoing $400. If I surrender now, I am losing $8000.
I need your advice.


Sook Fun

[Dennis Ng]

Hi Dennis,

I have bought the PruCash in 2005, Maturity Date is 2029. It is giving me 2.5% upon maturity.
It is a wise choice to hold on to it. Every month I am payoing $400. If I surrender now, I am losing $8000.
I need your advice.


Sook Fun

Hi Sook Fun,
you have to factor in that if you can get a higher turn of say 5% on this savings, then by earning 2.5%, you're losing 2.5% yearly until year 2029. How much would that Opportunity cost be vs your current losses of S$8,000 if you surrender.

Then estimate the upside vs downside of this decision to make the final decision.