Manufacturing PMI declines by 1.7 points in May

Singapore's electronics PMI also slipped by 1.6 points last month.

Manufacturing PMI slipped 1.7 points to 50.8 in May, reflecting lower neworders, new export orders, lower production output, inventory and employment,and pointing to softer momentum for the industry ahead. The electronics PMIalso retreated 1.6 points to 51.4, amid lower new orders, production, finishedgoods, inventory and imports, suggesting potential supply disruptions from Japanas well. These readings are consistent with recently released regionalPMIs including China(now at 9-month low of 52).

According to the Singapore Institute of Purchasing and Materials Management (SIPMM), the decline in overall PMI was attributed to lower new orders and new exports as well as lower levels of production output and inventory.

The institute said stockholdings of finished goods and employment continued to expand but posted lower readings.

Ms Janice Ong, executive director, SIPMM, said the May PMI readings indicated that the rate of expansion for the manufacturing economy has slowed. "It is reassuring to note that the manufacturing economy continued to remain on the expansion track, a sign of positive business ambience," Ms Ong added. She also said that inflationary pressures and global uncertainties remained as some of the key concerns for local manufacturers in their management of raw materials cost and supply.

The electronics sector recorded further expansion at 51.4, which was a decline of 1.6 points.
Despite a slowdown in the second-quarter, Mr Song said growth for this year is still on track.