Singapore factory activity worsens in June; 12th month of contraction
SINGAPORE (Reuters) – Activity at Singapore factories worsened slightly in June, shrinking for a 12th straight month on falling new orders and exports, a survey showed on Monday, as still-weak global demand continues to hurt the trade-dependent economy.
The Singapore Institute of Purchasing & Materials Management’s Purchasing Managers’ index (PMI) slipped to 49.6 for June from May’s 49.8. The electronics sector PMI slid to 49.0 last month from 49.1 in May.
An index below 50 indicates contraction, while one above that suggests expansion.
“The decline in reading was due to a contraction in factory output, and a faster rate of contraction in both new orders and new exports,” the institute said in a statement.
China’s vast factory sector in June stalled with shrinking exports and job cuts. European manufacturers saw a bounce, but such expansion could be threatened after Britain voted to leave the European Union.
(Reporting by Jongwoo Cheon; Editing by Richard Borsuk)