Factory output expands 2 mths in a row in June
By TEH SHI NING
SINGAPORE’S manufacturing economy expanded for a second straight month in June, going by the latest Purchasing Managers’ Index, released yesterday.
Although June’s PMI reading of 51.1 was one- tenth of a point down from May’s figure, due to a first-time contraction in overall stocks of finished goods and imports, more positive signs surfaced in the electronics sector. The electronics PMI was 55 in June - its highest level since December 2006.
The PMI is a forward-looking indicator based on a survey of purchasing executives at 150 companies, conducted by the Singapore Institute of Purchasing & Materials Management (SIPMM) each month. Readings above 50 indicate expansion, while ones under 50 imply a contraction.
Both the overall new orders and new export orders indicators continued to expand in June, recording their highest readings since December 2007. ‘This is clearly a positive sign in an otherwise uncertain state of global business environment,’ said SIPMM executive director Janice Ong.
Inventory indicators for both the overall manufacturing economy and the key electronics sector expanded.
Input prices for both overall manufacturing and electronics contracted. ‘A likely explanation would be the weakening of the Singapore currency and the ability of local manufacturers to localise their input materials,’ Ms Ong said.
Order backlogs, for overall manufacturing and electronics, continued to contract too, which could indicate that local manufacturers are no longer holding back on production. But Ms Ong said that anecdotal evidence from the survey suggests local producers remain cautious. The depletion of order backlogs could therefore mean uncertainty over future orders.
The outlook on the employment front remained negative. While the electronics employment index moderated after 11 months of contraction, the index for overall manufacturing employment contracted for a 19th consecutive month in June.
Noting that the spread of H1N1 flu has had minimal impact on the economy so far, Ms Ong said that she is ‘hopeful that the overall employment ambience could be improved in coming months’.
Source : Business Times - 03 July 2009
Buy Sell Rent invest In Singapore Property Real Estate
MINDY YONG
( +65 ) 91002985
mindy@mindyyong.com
Credo Real Estate launches collective sale of Culford Garden at Siglap »« Two East Coast en bloc sites on market
