Singapore manufacturing activity moderates in June

Optimism over the strong manufacturing performance earlier in the year seems to have cooled with the sector turning in a set of less-than-stellar numbers on Wednesday, July 2, 2014. -- PHOTO: ST FILE
Optimism over the strong manufacturing performance earlier in the year seems to have cooled with the sector turning in a set of less-than-stellar numbers on Wednesday, July 2, 2014. -- PHOTO: ST FILE

SINGAPORE - Optimism over the strong manufacturing performance earlier in the year seems to have cooled with the sector turning in a set of less-than-stellar numbers on Wednesday.

The Singapore Purchasing Managers' Index (PMI), a monthly gauge of manufacturing activity, dipped for second consecutive month in June, coming in at 50.5.

Last month's number was a slight 0.3 dip over May's reading, but was still above 50 and so remained in expansion mode.

A Bloomberg survey showed economists were expecting a reading of 51 for June.

The decline came as as manufacturers reported fewer new domestic and export orders, and lower levels of production and imports.

Still, the PMI has now been in expansionary territory for six consecutive months.

The PMI is compiled by the Singapore Institute of Purchasing and Materials Management (SIPMM) from a survey of more than 150 industrial firms.

The electronics sector - which makes up about a third of manufacturing output - saw its June PMI tick up 0.3 points over the previous month to reach 50.7.

Singapore's weaker-than-expected overall PMI reading came amid stronger manufacturing performance among its neighbours last month.

China's official PMI hit a six-month high of 51 in June from May's 50.8, helping to lift activity broadly across the region.