TAIPEI, July 2 (Xinhua) -- Taiwan's manufacturing activity contracted for the second consecutive month in June, indicated by the latest purchasing managers' index (PMI) reading by the Chung-Hua Institution for Economic Research (CIER).

The PMI for June stood at 48.1, down 0.1 percentage points from the previous month. A PMI reading above 50 suggests expansion while below 50 indicates a contraction.

Among the five sub-indexes, new orders, production, employment and inventory levels continued to contract and supplier deliveries continued to drop, according to CIER.

Among the six major manufacturing industries, the basic raw materials, transportation and electricity/machinery industries saw contractions in June while the food/textile, electronics/optoelectronics and chemicals/biotech industries saw expansions.

For the services sector, the non-manufacturing index (NMI) dropped by 2.0 percentage points from the previous month to 52 in June, according to the CIER.

Among the four major sub-indexes in the NMI, business activity/production, new orders and employment continued to expand while suppliers' deliveries dropped.