PMI falls to near three-year low in June

There were declines in new orders, factory output, inventory and employment performances.

Singapore’s PMI fell for the second straight month after contracting by 0.3 point to 49.6 in June. This marks the lowest index reading since August 2016, according to the Singapore Institute of Purchasing and Materials Management (SIPMM).

It was attributed to first-time contractions in key indicators including new orders, factory output, inventory and employment level. Slower growth was also recorded for the indexes of new exports and imports.

However, the indexes of finished goods, input prices and supplier deliveries recorded faster rates of expansion.

Meanwhile, the electronics sector fell 0.2 point from the previous month to 49.2, marking its eight months of consecutive contraction, which was also dragged by declines in its key indicators.

The imports index’s expansion slowed down whereas input prices and electronic supplier deliveries indexes expanded at a faster pace. Electronic finished goods index recorded a slower pace of contraction whilst the electronics order backlog index contracted for the 14th consecutive month.