Singapore April factory activity shrinks a 10th month, but best level since June

SINGAPORE (Reuters) - Activity in Singapore factories contracted for a 10th consecutive month in April, but the manufacturing index reached its highest level since June, with new orders improving, a survey showed on Tuesday.

The Singapore Institute of Purchasing & Materials Management's Purchasing Managers' index (PMI) rose to 49.8 in April, the highest since June 2015. In March, the index was 49.4.

A reading below 50 indicates contraction, while one above that suggests expansion.

The electronics sector PMI also rose in April, to 49.5, its highest since July. The sector PMI was 49.0 in March.

"In spite of continued contraction in the sector PMI, the successive improvements in readings indicated that the electronics sector appeared resilient to the uncertain and challenging global business environment," the institute said in a statement.

Asian factories barely grew in April with a private survey showing on Tuesday that China's factories activity shrank for the 14th straight month.

Last month, Singapore's central bank unexpectedly eased monetary policy after growth in the trade-dependent economy stalled in the first quarter.

(Reporting by Jongwoo Cheon; Editing by Richard Borsuk)