Singapore's PMI falls to 49.7 in July
SINGAPORE's Purchasing Managers' Index (PMI) reverted to contraction mode in July, slipping 0.7 point to 49.7 after rising for two straight months.
The drop was more than the market had forecast. Private-sector economists polled by Bloomberg had earlier projected a reading of 50.1, down from June's 50.4.
A reading above 50 denotes growth, while one under 50 points to a contraction in the manufacturing sector.
Said the Singapore Institute of Purchasing & Materials Management (SIPMM), which compiles the index monthly from a survey of more than 150 manufacturing firms' purchasing managers: "The contraction in the overall PMI was attributed to first-time contraction in new orders and production output as well as further decline in new export orders.
"Inventory, stockholdings of finished goods and imports expanded further whilst employment continued to contract and recorded lower readings."
The electronics PMI also fell below the 50-point mark in July, dropping 0.8 point to 49.5.
The readings indicate a decline in new orders from both domestic and overseas markets. "Production output contracted for the first time after having expanded over two consecutive months," added SIPMM.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Economy & Policy
Singapore factory output reverses into negative territory in March, down 9.2%
Tripartism and trust will help Singapore navigate a world ‘fraught with uncertainties’: Tan See Leng
Daily Debrief: What Happened Today (Apr 26)
Singapore must prepare for slower growth at higher costs: MAS
Outgoing Singapore, Indonesia leaders to hold their final retreat in Bogor on Apr 29
Singapore’s growth should strengthen to ‘around potential rate’, output gap to close by end-2024: MAS