S&P Global Singapore Purchasing Manager's Index or PMI, a composite single figure indicator of performance, dipped under the 50.0 no-change mark during January, according to figures released by S&P Global on Tuesday.

PMI was 49.9, down from 51.5 in December 2024.

Panelists attributed the dip to the spread of COVID-19 in the city-state which impacted new businesses and company operations.

Business activity also declined, especially across the wholesale & retail, finance & insurance, and construction categories.

However, manufacturing, consumer services, real estate & business services and information and communication showed resilience during January.

Meanwhile, employment decreased in January, following the first decrease in eight months at the end of 2024.

Purchasing activity declined for the third consecutive month but the drop in input buying was relatively slower as compared to December 2024.

Overall input costs increased during January with cost pressures driven by higher shipping and transportation prices.