Singapore June PMI up, but manufacturing recovery still uncertain

A DISMAL first half of 2015 for Singapore's manufacturers could have ended on a better note after all, as improvements in the latest purchasing managers' index (PMI) signalled a pick-up in factory activity last month.

Singapore's 0.2 point rise to a June reading of 50.4 - accompanied by the return of electronics PMI to growth with a 50.3 reading - defied the tumbling PMIs across Asia. And this regional picture, plus continued uncertainty over external demand, is tempering economists' expectations of a strong second-half turnaround.

June's PMI marked a second straight month of expansion - indicated by a reading above 50 - following five months in the sub-50 contraction zone. This was thanks to increases in new orders, production and inventory, 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.