PMI climbs 0.2 point to 49.8 in July

A marginal expansion of new orders and factory output drove the recovery.

Singapore’s PMI has recovered slightly by 0.2 points MoM to 49.8 in July after falling to a near three-year low of 49.6 in June, according to the Singapore Institute of Purchasing and Materials Management (SIPMM).

The mild improvement during the month can be attributed to marginal expansion posted in new orders and factory output, as well as a continued expansion of new exports. Inventory posted a slightly faster contraction whereas finished goods posted a slower expansion. The indexes of both imports and input prices recorded faster rates of expansion.

Meanwhile, the order backlog index continued to soften for the 10th consecutive month despite an improvement of 0.3 points.

The electronic sector PMI inched up 0.1 MoM to 49.3 in July, posting its ninth consecutive month of contraction. Both import and input price indexes saw faster rates of expansion.

Electronics finished goods index contracted faster in the same period whilst the supplier deliveries index posted a slower rate of expansion. The electronics order backlog index has now contracted for 15 continuous months.