Singapore manufacturing PMI posts slower expansion in May

MANUFACTURING activity in Singapore picked up at a slower pace in May, although it continued its expansion trend for the ninth straight month, based on the latest data released by the Singapore Institute of Purchasing & Materials Management (SIPMM) on Friday.

The purchasing managers' index (PMI) reading in May was 50.8, a tad slower from April by 0.3 of a point.

The employment indicator showed contraction, while factory output, new orders, new exports, inventory level and input prices recorded slower growth rates. Stocks of finished goods, imports, supplier deliveries and order backlog registered faster pace of expansion.

Electronics sector PMI rose 0.8 point from April to post a faster rate of expansion at 52.4 - a record high since October 2014. Most indicators recorded faster growth rates, except for stocks of finished goods and input prices.

A PMI reading above 50 indicates that the manufacturing economy is generally expanding and a reading below 50 suggests decline.