(RTTNews) - Singapore manufacturing sector expanded at a slower pace in October, a report by the Singapore Institute of Purchasing & Materials Management or SIPMM said on Wednesday.

The Manufacturing Purchasing Managers Index or PMI stood at 50.2 in October, down from 50.6 in September. However, this was the sixth consecutive month of expansion in manufacturing economy. A PMI reading above 50 indicates expansion, while a reading below 50 signals contraction.

The decrease in the overall PMI was mainly due to lower new orders and production as well as inventory, the report said. But, new export orders returned to growth in October.

In the electronics sector, the index reading stood at 49.6 in October, down from 52.4 in September. This was the first contraction in electronics PMI after registering an expansion in six consecutive months. The decline was due to a contraction in new orders from domestic and overseas markets.

“The data point to a month-on-month decline in IP ex-pharma and in electronics IP in October,” ING Chief Asian economist Tim Condon said. “A low-base effect will flatter YoY growth in electronics IP from October and IP ex-pharma from December.”

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