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     FrontPage Edition: Wed 12 July 2006

PMI for electronics shows contraction for June 2006


JUNE PMI expanded further at 52.7

 - The electronics index reverted to contraction at 48.2

The JUNE reading of the Singapore Purchasing Managers¡¯ Index (PMI) indicated that the manufacturing economy expanded for the 3rd consecutive month.
The PMI posted a reading of 52.7, which is an increase of 0.4 point over the previous month.
The increase of the overall PMI was attributed to an increase in new orders and new export orders, higher production output and inventory level.
Whilst the overall employment index reverted to a contraction, the overall stocks of finished goods and input prices continued to expand. The imports index contracted for the second month after recording expansion in the earlier month.

In the electronics sector, the index posted a decline of 4.6 points, to revert to a contraction at a reading of 48.2, after recording an expansion in the previous month.
The contraction in the electronics PMI was attributed to a decline in new orders and new export orders.
In addition, the sector recorded contractions in production output, input prices as well as stocks of finished goods.
The electronics inventory and imports continued to contract while the employment index reverted to a contraction after recording expansion over 7 consecutive months.

A reading of the Singapore Purchasing Managers¡¯ Index above 50 indicates that the manufacturing economy is generally expanding and that the economy is generally declining when the reading falls below 50.

Source: News July 2006

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