S'pore factory activity contracts in July as US tariff fears sink in

Electronics shows growth, leaving wider manufacturing sector with mixed outlook

- Annabelle Liang

Manufacturing output here slipped in July after a slight increase in June amid uncertainty over US tariffs.

The purchasing managers' index (PMI) - a barometer of the sector's health - dipped from 50 points in June to 49.9 points.

A reading above 50 indicates growth; one below suggests a contraction in output.

Electronics, which accounts for around 40 per cent of Singapore's manufacturing output, was a modestly bright spot, with its PMI reading edging up from 50.1 to 50.2 from June to July.

Mr Stephen Poh, executive director of the Singapore Institute of Purchasing and Materials Management, which compiles the index, said readings showing electronics in expansion and the broader manufacturing industry in contraction "painted a mixed outlook".

"Anecdotal evidence suggests that local manufacturers remained concerned about the uncertain global trade policy and tariffs, and many companies have held back their investment and hiring plans," he added.