PMI dips to 50.4 in June

June, however, marked the 10th consecutive month of expansion.

June marked a slower expansion of the Purchasing Managers' Index (PMI), declining by 0.2 point to 50.4 from May.

The Singapore Institute of Purchasing and Materials Management (SIPMM) attributed the dip to a slower expansion rate in the key indexes of new orders, new exports, factory output, and contraction in the employment index,

Indexes of  finished goods, supplier deliveries, order backlog, and future business also recorded slower expansion rates,

On the other hand, the import index saw a faster expansion.

"The overall manufacturing sector has recorded continued expansion throughout the first half of the year, with the latest PMI reading indicating robust performance for the electronics industry. However, anecdotal pieces of evidence suggest that the rerouting of vessels to avoid conflict zones and port congestion have slowed supplier deliveries and escalated supply chain costs," said Stephen Poh, executive director of SIPMM.