Singapore: Manufacturing PMI falls in June
The Singapore Institute of Purchasing and Materials Management (SIPMM) Manufacturing PMI declined to 50.4 in June from 50.6 in May. As a result, the index moved closer to the 50.0 no-change threshold, and signaled a slower improvement in manufacturing-sector operating conditions compared to the previous month. Meanwhile, the electronics PMI rose to 51.2 in June (May: 51.1).
The decrease in the June PMI was primarily due to a slower expansion in new orders, new exports and factory output, alongside a contraction in the employment index. However, there was a silver lining as the input purchases index saw a faster expansion rate.
Regarding prices, the input prices index returned to expansion, suggesting an increase in costs for manufacturers. June also saw anecdotal evidence pointing to rerouted vessels to avoid conflict zones and port congestion, which have contributed to slowed supplier deliveries and increased supply chain costs. These factors have likely tempered business sentiment within the manufacturing sector.