By Ronnie Harui
SINGAPORE–Singapore’s manufacturing activity contracted at a slower pace in June, mainly owing to slower contraction of new orders, new exports and factory output.
The city-state’s purchasing managers index rose to 49.7 in June from 49.5 in May, the Singapore Institute of Purchasing and Materials Management said Monday. However, the June reading was still the fourth straight month of contraction. A PMI reading below 50 indicates a contraction.
“Local manufacturers are bracing for a dour outlook going into the second half-year, amid increased uncertainties in the global economic environment,” said Stephen Poh, executive director at SIPMM.
“Disruptions of semiconductor supply chains resulting from U.S. chip restrictions, have affected the electronics markets. Industry insiders have highlighted the longest drag in semiconductor market sales, which have decreased for 5 consecutive quarters,” Poh added.
The PMI for electronics, which accounts for about a third of Singapore’s manufacturing, declined to 49.0 in June from 49.1 in May, SIPMM said.
Write to Ronnie Harui at ronnie.harui@wsj.com
Read the full article here