SINGAPORE, June 4 (Xinhua) -- Business conditions in Singapore's private sector improved at the slowest pace since February, with the seasonally adjusted Purchasing Managers' Index (PMI) easing to 51.5 in May from 52.8 in April, according to a report released Wednesday by S&P Global.
A PMI reading above 50 indicates expansion, while a figure below 50 signals contraction. Although May marked the fourth consecutive month of expansion, the latest reading reflects the weakest rate of improvement in three months.
The report noted that business activity growth moderated in line with a more subdued increase in new orders. Stocks of purchases were depleted, though this was partly due to supplier delivery delays.
Sentiment among firms turned pessimistic again, weighed down by growing concerns over the economic outlook. This uncertainty contributed to another drop in employment levels.
Meanwhile, input cost inflation eased to a 45-month low, resulting in only a marginal increase in output charges during May.
Jingyi Pan, economics associate director at S&P Global Market Intelligence, said that while business conditions continued to improve in May, forward-looking indicators point to a potential softening ahead.
"Specifically, a marked deceleration in new order growth was accompanied by sentiment turning pessimistic and at a post-pandemic low. Concerns have notably heightened surrounding the outlook for growth on the back of rising geopolitical uncertainty," said Pan. ■
