Posted: 02 August 2011 2150 hrs
SINGAPORE: Singapore's manufacturing activity in
July contracted for the first time in 10 months as the global
economy slowed.
The Purchasing Managers Index (PMI) fell to 49.3 points in July
from 50.4 in June, according to data released on Tuesday by the
Singapore Institute of Purchasing & Materials Management.
A PMI reading above 50 indicates an expansion in manufacturing
activity, while a reading below that level shows a
contraction.
The institute attributed the dip in the July PMI to a decline in
new orders and new export orders, as well as lower inventory
levels.
It said stockholdings of finished goods contracted for the second
straight month, while imports and input prices continued to grow,
albeit more slowly.
The PMI for electronics fell to 49.5 points in July from June's
50.9 following eight months of expansion due to fewer orders.
The weakness in the PMI readings came amid a slowdown in global
manufacturing.
The United States and Europe reported weaker production activity
this week, while PMI readings in China and India - the region's
fastest-growing manufacturing hubs - also slowed in July.
- CNA