Singapore PMI contracts in July as orders fall

Manufacturing activity in Singapore contracted in July after two months of gains as new orders fell, the latest Purchasing Manager's Index (PMI) showed on Wednesday.

The PMI stood at 49.8 points in July, falling below the 50-point threshold that signals manufacturing is declining, the Singapore Institute of Purchasing & Materials Management (SIPMM) said. The index had stood at 50.4 points in June and May.

SIPMM said the sub-index for new orders declined to 49.6 in July from June's 50.8, while the sub-index for new export orders slipped to 50.2 from 51.1.

The employment sub-index came in at 49.9, an improvement from May's 49.5, but stayed below the key 50-point level for the 13th straight month.

A separate PMI for the city-state's important electronics sector also slipped into negative territory, falling to 49.2 after six months of expansion, SIPMM said.

The weakness in Singapore's PMI is consistent with the regional trend, with China's official factory PMI falling to an eight-month low of 50.1 in July from 50.2 in June.