TOKYO -- Singapore's business activity expanded for the third straight month in May, but the pace of expansion has slowed from a five-month high in the previous month, signaling a weaker pace of growth in the country's private sector economy.
The Nikkei Singapore Purchasing Managers' Index, or PMI, softened to 52.1 in May from 53.3 in April. A reading above 50 indicates economic expansion, while a reading below 50 points toward contraction.
Companies remains optimistic that growth could be sustained over the coming year, however some companies showed caution toward the short-term.
"Singapore's private sector economy has endured a turbulent time of late, with the PMI signaling a mixed picture for business conditions," said Joe Hayes, economist at IHS Markit, which compiles the survey. "The headwinds remain apparent amid trade tensions between the U.S. and China re-escalating, as well as the latter enduring slowing growth."
"Nevertheless, the domestic market continued to provide support in May, defying the decline seen in export orders," Hayes said, pointing to gains in employment and wages.
For more information, visit IHS Markit website.