Posted: 02 August 2011 2150 hrs
SINGAPORE: Singapore's manufacturing activity in July contracted for the first time in 10 months as the global economy slowed.
The
Purchasing Managers Index (PMI) fell to 49.3 points in July from 50.4
in June, according to data released on Tuesday by the Singapore
Institute of Purchasing & Materials Management.
A PMI reading above 50 indicates an expansion in manufacturing activity, while a reading below that level shows a contraction.
The
institute attributed the dip in the July PMI to a decline in new orders
and new export orders, as well as lower inventory levels.
It
said stockholdings of finished goods contracted for the second straight
month, while imports and input prices continued to grow, albeit more
slowly.
The PMI for electronics fell to 49.5 points in July from June's 50.9 following eight months of expansion due to fewer orders.
The weakness in the PMI readings came amid a slowdown in global manufacturing.
The
United States and Europe reported weaker production activity this week,
while PMI readings in China and India - the region's fastest-growing
manufacturing hubs - also slowed in July.
- CNA
due to dropping of value in USD to SGD?
the world trade contract during the same period. Another recession may be around the corner.