Updated: 10/03/2012 07:48

Consecutive contraction for Singapore's manufacturing economy

®Copyright MediaCorp

Singapore's manufacturing economy has contracted for the third straight month in September.

The purchasing managers index, or PMI slipped lower to 48.7 in September.

A PMI reading of below 50 indicates that the manufacturing economy is generally declining.

The numbers are also in line with weakness seen across the region.

This raised concerns that the country may be heading for a technical recession in the third quarter.

The latest data also showed a weaker electronics sector, and a decline in new orders from both domestic and overseas markets.

Analysts say the trend shows that Singapore now relies heavily on other industries to drive growth.

Meanwhile, analysts say there is a chance that the Monetary Authority of Singapore may ease its monetary stance in the upcoming policy meeting in mid-October.