Spore Economy

Economy: Spore's manufacturing sector reverted to expansion in May after a month of contraction, indicating that production may be picking up despite few signs of revival in the global economy. The PMI rose to 50.4 in May from 49.7 in Apr. A PMI reading above 50 signals expansion in manufacturing activity, while that below 50 indicates contraction. Spore's marginal rise in the manufacturing PMI comes as similar indexes from major economies such as the US, China and HK have shown a decline. The rise was attributed to an expansion in new orders and new export orders. Inventory reverted to expansion and production output continued to expand for the 4th consecutive month. The PMI for electronics, a major export item for Spore, eased in May to 50.8 from the 51.5 in the previous month.