PMI rises to 50.7, marking faster expansion in July

The faster expansion rate in indexes such as new orders helped boost the PMI.

July marked a faster expansion of the Purchasing Managers' Index (PMI), increasing by 0.3 point to 50.7 from June.

The Singapore Institute of Purchasing and Materials Management (SIPMM) attributed the faster expansion rate to the key indexes of new orders, new exports, factory output, and input purchases.

The slower contraction in the employment index also helped boost the PMI.

Indexes of finished goods, imports, input prices, and order backlog also recorded slower expansion rates, but the supplier deliveries index reverted to a contraction.

Meanwhile, the future business index recorded faster expansion, which Stephen Poh, executive director of SIPMM, said reflects the optimism of electronics manufacturers about sustained growth in the sector. 

“The latest PMI readings signal a positive outlook for the manufacturing sectors at the start of the second half of the year,” Poh added.