Positive data point from a very small, very strong economy ...
May PMI data released by the Singapore Institute of Purchasing & Materials Management showed a positive reading for the first time since August of last year, registering at 51.2 as orders flowing in from "The Client" showed no signs of abating. Demand from China for consumer electronics were particularly pronounced, driving the electronic sub index to its second consecutive positive monthly reading of 52.9.
As an entrepot economy with the highest per capita GDP in Asia, Singapore has always served as a barometer of regional trade. These latest figures are yet more support for our long China thesis and a reminder that Korea and Taiwan do not have a monopoly on Chinese demand for high margin consumer goods.