By Ronnie Harui
SINGAPORE–Singapore’s manufacturing activity shrunk further in May, owing to faster contraction in new orders, new exports, factory output and inventory.
The city-state’s purchasing managers index fell to 49.5 in May from 49.7 in April, the Singapore Institute of Purchasing and Materials Management said Saturday. The May reading was the third straight month of contraction. A PMI reading below 50 indicates a contraction.
“Outlook of the global economic growth remains lacklustre,” said Stephen Poh, executive director at SIPMM. “Despite inflation showing signs of easing, the price pressures remain high. Whilst Singapore manufacturers grapple with weak demand from the major economies, they are still hopeful that China’s reopening could provide a boost to the sector in the coming months,” Mr. Poh added.
The PMI for electronics, which accounts for about a third of Singapore’s manufacturing, dropped to 49.1 in May from 49.2 in April, the SIPMM said.
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