Manufacturing activity in Singapore expanded slightly last month, reversing a contraction in April as orders and inventories rose, the latest purchasing managers index (PMI) showed.
PMI rose to 50.4 last month from 49.7 in April, the Singapore Institute of Purchasing & Materials Management (SIPMM) said. A reading above 50 signals expansion in manufacturing activity.
A separate PMI for Singapore’s important electronics sector stayed in positive territory for the fifth consecutive month at 50.8, down from April’s 51.5, the SIPMM said.
Song Seng Wun, regional economist at CIMB Research, said: “It’s a nice surprise that the Singapore reading surprised on the upside with both tech as well as overall PMI coming in above expectation on still decent production, orders, inventory, employment growth.
“So at least in the near term, it looks like Singapore’s manufacturing activity is still expanding and growing at a fairly modest pace.”