SINGAPORE (Jan 3): Activity in Singapore factories rose for the 14th consecutive month in December, but at a slightly slower pace than the month before, a survey showed on Wednesday.

The Singapore Institute of Purchasing & Materials Management's Purchasing Managers' Index (PMI) slipped to 52.8 after reaching the highest level in 8 years in November at 52.9.

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

"The marginal lower reading was attributed to a slower rate of expansion in factory output and inventory, but supported by a slightly faster rate of expansion in new orders, new exports, and employment," the institute said in a statement.

The PMI for the electronics sector fell to 53.2 in December,  from 53.5 in the previous month.

This comes after Singapore's manufacturing output in November rose less than expected from a year earlier.

The institute said that despite a slower expansion rate for electronics in December, "anecdotal evidences suggest that electronics manufacturers are cautiously optimistic of continued growth for the electronics sector in the new year."