Low factory output and exports weigh down Singapore PMI in June

It dipped 0.2 point to 52.5.

The Singapore Purchasing Managers’ Index (PMI) in June dipped 0.2 point to a slower expansion of 52.5 points, marking the 22nd month of consecutive expansion, the Singapore Institute of Purchasing & Materials Management (SIPMM) revealed.

A reading of the PMI above 50 indicates that the manufacturing economy is generally expanding, whilst a reading below 50 indicates that the economy is generally declining.

The latest PMI reading was attributed to a slower growth in factory output (53.8), slower growth in new orders (54.3) and new exports (53.0), as well as a slightly lower inventory level (52.7), SIPMM said. Meanwhile, overall employment (50.6) is marginally higher.

The stocks of finished goods recorded a faster rate of expansion, and the index has now recorded the highest reading of 52.9 since February 2011 when the reading was 53.5. The imports index (52.8) posted a slower rate of expansion and the input prices index (51.6) was marginally higher.

The order backlog index (49.9) reverted to a marginal contraction after recording consecutive months of expansion since July 2016

Meanwhile, the Electronics Sector PMI declined 0.4 point from the previous month to record an expansion reading of 51.9. The latest reading of the electronics sector was attributed to slower expansion in key indicators of new orders (53.6), new exports (52.5), factory output (52.6), as well as inventory (53.5) and employment (50.8).

Despite these lower readings, the electronics sector reading has now recorded its 23rd month of consecutive expansion. Both indicators of imports (52.0) and input prices (51.2) recorded slower rates of expansion, whereas the indicators of supplier deliveries (52.2) and finished goods (52.3) recorded faster rates of expansion.

The electronics order backlog index remained in contraction for the second month.