Outlook good for S'pore's manufacturing sector
July's PMI grows at fastest pace in 7 months. -Reuters
Thu, Aug 02, 2007
Reuters
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.