Singapore’s factory activity expands for 24th straight month in June, but at slower pace

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SINGAPORE: Singapore’s factory activity expanded for the 24th consecutive month in Jun, but at a slower rate than the month before.

The Purchasing Managers’ Index (PMI) dipped from 50.4 to 50.3, according to data released by the Singapore Institute of Purchasing and Materials Management (SIPMM) on Monday (Jul 4). 

A PMI reading above 50 indicates that the manufacturing economy is generally expanding, while a figure below that threshold points to contraction.

The latest reading was attributed to faster expansion rates in the key indexes of new orders, new exports and factory output. The inventory index and supplier deliveries index also expanded.

“The employment index posted a slower expansion whereas faster expansion rates were recorded for the indexes of imports and input prices,” said the institute. 

The finished goods index posted a marginally slower contraction whereas the order backlog recorded a slightly faster expansion rate, it added.

The input prices index expanded for the 23rd consecutive month, posting a reading of 52.7.

SIPMM vice president for industry engagement and development Sophia Poh said the latest PMI reading indicated strong performance for the electronics industry. 

“This positive outlook is indeed heartening, considering several headwinds facing the Singapore economy, and primarily due to the continuing Russia-Ukraine conflict,” she added. 

The electronics sector PMI in June posted an increase of 0.3 points from the previous month to record a faster rate of expansion at 50.8, the 23rd month of consecutive expansion for the sector. 

“The latest sector reading was attributed to faster expansion rates in the key indexes of new orders and new exports whereas the employment index posted a slower expansion rate,” said the institute.

The factory output index expanded and both the inventory index and supplier deliveries index recorded a slower contraction, it added.

Faster expansion rates were also recorded for indexes of imports, input prices, and order backlog, said SIPMM. 

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