PMI edges up to 49.3 in July

It increased by 0.1 points from June.

The Purchasing Managers' Index (PMI) had a slower contraction in July, improving by 0.1 points to 49.8.

The Singapore Institute of Purchasing and Materials Management (SIPMM) attributed the increase to “a slower contraction in the indexes of new orders, new exports, factory output, employment but a faster contraction in inventory.”

Electronics PMI likewise improved by 0.3 points in July but remained in contraction territory at 49.3.

“Anecdotal evidence suggests that electronics manufacturers are somewhat sanguine about the prospects of a near-term recovery, driven by the chip industry. There is a growing demand for enhanced integration capacity in generative artificial intelligence. However, the recent export ban on gallium and germanium by China could further disrupt the semiconductor supply chains,” Stephen Poh, executive director of SIPMM.