Singapore Manufacturing PMI Signals Continued Growth, But Loses Some Steam

By Amanda Lee

SINGAPORE--A key gauge of Singapore's manufacturing activity continued expanding for a tenth consecutive month, but lost some steam as the sector's gradual and fragile recovery continues.

The purchasing managers index compiled by the Singapore Institute of Purchasing and Materials Management edged down to 50.4 in June from 50.6 in May. A reading above 50 indicates that the manufacturing economy is generally expanding, while one below suggests a decline.

The decline was due to a slower expansion in new orders, new exports and factory output, SIPMM said on Tuesday.

While manufacturing has grown through the first half of the year, vessels rerouting to avoid conflict zones and port congestion seem to have slowed deliveries and driven up supply chain costs, SIPMM executive director Stephen Poh said.

The PMI for electronics, which accounts for about a third of the city-state's manufacturing activity, expanded for the eight consecutive month in June, rising to 51.2 from 51.1 in May. The data showed faster growth in new orders, new exports, factory output and input purchases, while the employment index slowed.

Tuesday's release comes as other private gauges of manufacturing activity in Asia suggest improving business conditions. It also comes ahead of Singapore's retail sales figures due later this week, which will be watched for signs of steady economic momentum.

Write to Amanda Lee at [e-mail]

(END) Dow Jones Newswires

07-02-24 0914ET