Singapore's industrial activity grew at a faster pace in May, according to itslatest purchasing managers' index (PMI), which also signalled a fourth consecutive month of growth for the electronics sector. However, regional PMIs released yesterday put a damper on this latest addition to Singapore's recent string of positive economic data.

In May, Singapore's PMI advanced higher into growth territory with a reading of 51.1, up from 50.3 in April. The 50‐point mark divides expansion from contraction,measured against the previous month. But the HSBC‐Markit PMIs for China, Taiwan and Korea all deteriorated, flagging a loss of momentum in Asian manufacturing.

China's PMI fell to 49.2, suggesting that factory activity shrank for the first  time in seven months as new orders fell. Even though the official PMI,said to poll larger firms,showed a slightrise, the drop in the HSBC PMI which covers more private‐sector SMEs yesterday fanned fears that the world's second largest economy is losing steam.

Taiwan's PMI fell to 47.1 too ‐ the first deterioration in six months ‐ as new orders and export order stumbled. And Korea's PMI signalled slower growth with a lower reading of 51.1 in May, down from 52.6 in April.

New orders and new export orders both grew more strongly in May than in April, as did the imports and employment sub‐indices, said the Singapore Institute of Purchasing & Materials Management (SIPMM), which polls purchasing managers of more than 150 industrial companies to compile the monthly index.

Source: AmFraser