1.5% GDP growth this yr?

In Economy on 03/05/2013 at 7:18 am

Yesterday it was announced that the manufacturing sector continued to expand last month, though at a softer pace, in line with expectations of a gradual and modest recovery as global economic uncertainties continue to linger.

Factory activity in April, as measured by the Purchasing Managers’ Index (PMI), was at 50.3, a marginal dip of 0.3 point from the previous month but still above the 50-point line that divides expansion and contraction.

The slight decline resulted from slower growth in new orders and new export orders, said the Singapore Institute of Purchasing and Materials Management (SIPMM), which compiles the monthly figures. (Today)

BT reported last week that DBS cuts growth rate from 3.2% to 2.5% but Credit Suisse reiterates forecast of 1.5%,{27464576-17231-7047640680}

As I’ve blogged before, a major issue for S’pore (and M’sia and Penang in particular) is the decline in PC sales. Last month, IDC,  a research firm, said that in the first quarter of 2013 worldwide PC sales fell by 13.9% to 76.3m units, their steepest decline since 1994, when records began. People have been slow to buy PCs with Windows 8, Microsoft’s latest operating system, but they are still buying tablets or smartphones. S’pore and M’sia are major organisms in the PC ecosystem. They are for all intents and purposes non-existent in the Android (Google) and Apple ecosystems.

And the bright spot in PC sales is not much help for HP and Dell which sources stuff from M’sia and S’pore. In China, not only are PC sales still rising; they are evenly split between desktops and portable notebooks, which globally make up 64% of the market. China overtook America in sales of personal computers (PCs) last year, to become the world’s biggest PC market. According to IHS, a research firm, shipments to China amounted to 69m units, against 66m to America.

The biggest player in the PC space in China is Lenovo, a home-grown company that bot IBM’s PC biz.


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