SINGAPORE, Aug 1 (Reuters) - Singapore's manufacturing sector grew at its fastest pace in seven months in July thanks to higher new orders and new export orders, a key indicator showed on Wednesday.
The Purchasing Managers' Index (PMI), a key gauge of the health of Singapore's manufacturing sector, rose to 53.3 points, the highest level since December, compared with 52.3 points in June, according to Singapore Institute of Purchasing & Materials Management.
A reading above 50 indicates that manufacturing is generally expanding.
An index for the important electronics sector index had a reading of 53.9 points in July, up from 53.1 points in June, marking the 12th consecutive month of expansion for the sector.
Electronic firms account for about a third of Singapore's manufacturing output.
The city-state is trying to diversify its manufacturing base away from electronics. It reported a worse-than-expected seasonally adjusted 9.4 percent drop in factory output in June, as drugs output slumped.
A survey by the Economic Development Board showed Singapore manufacturers have turned less positive on business prospects for the second half of this year, reflecting a weaker outlook for the electronics and engineering industries.
Purchasing Managers' Index and components:
July '07
June 07
May 07
Purchasing managers index
53.3
52.3
50.0
New orders
55.3
53.3
51.1
New export orders
56.5
55.9
50.8
Production index
55.7
55.1
50.2
Inventory index
53.7
52.2
48.4
Stocks of finished goods
52.1
52.8
50.5
Imports index
52.4
51.9
50.3
Input prices index
52.6
52.3
49.5
Employment index
50.2
49.5
50.1
Supplier deliveries index
51.1
50.8
51.6
Order backlog index
50.3
48.3
47.0
Electronics sector
53.9
53.1
51.1
Electronics new orders
56.6
56.3
53.6
Electronics new e/orders index
57.2
55.5
52.9
Electronics production index
55.5
54.6
52.6
The indices are based on data compiled from monthly replies to questions asked of purchasing executives in more than 150 industrial companies. The survey is based on 12 industry groupings and weighted by each industry's contribution to gross domestic product.
Survey responses reflect the change, if any, in the current month compared with the previous month. The Purchasing Managers' Index is a composite index based on the diffusion indices of leading market indicators, with varying weights applied.
