SINGAPORE (May 2): Factory activity in Singapore grew at a slightly slower pace in April than the previous month due to a decline in new orders, exports, inventory and employment, a survey showed on Tuesday.

The Singapore Institute of Purchasing & Materials Management's Purchasing Managers' Index (PMI) eased to 51.1 from a two-year high of 51.2 in March.

A reading above 50 indicates expansion, while one below that level points to contraction.

“The slower rate of expansion was attributed to declining growth rates in key indicators of new orders, new exports, inventory and employment,” the institute said.

Activity in the electronics sector also eased in April, at 51.6 from 51.8 the previous month.

“The slower rate of expansion was attributed to slower growth rates in the key indicators of new electronics orders, electronics factory output, and electronics inventory level,” it said, adding that stocks of finished goods in the sector recorded a first-time contraction after seven months of expansion.

In April, the PMI input prices index fell to 50.7, from 51.2 in March.

This comes after Singapore's factory output in March rose faster than expected at 10.2% year-on-year, indicating an upward revision in first quarter gross domestic product.

Singapore’s economy has struggled over the past two years. In the first quarter of this year, GDP shrank 1.9% from the previous three months and grew 2.5% from a year earlier. However, Analysts say industrial production will begin to moderate in coming months, because of lower regional demand.