Singapore Private Sector Growth at 3-Month High

The S&P Global Singapore PMI jumped to 59.2 in February 2026 from 56.8 in January, marking the thirteenth consecutive month of expansion and the second-fastest pace on record, ranked only behind May 2022. New orders rose at the quickest rate in 18 months, supported by stronger domestic and external demand, while output expanded historically fast, led by transport, information & communication. Backlogs climbed at a survey-record pace, prompting the fastest increase in staffing in two years, mostly temporary hires. Purchasing activity and inventories also rose, with firms building safety stocks in anticipation of higher future output. Business optimism reached a five-year high amid expansion plans and public initiatives. Supply pressures intensified, driving input costs up at the steepest rate in two years and output prices to the fastest pace in over three-and-a-half years, well above long-term averages.

The S&P Global Singapore PMI climbed to 56.8 in January 2026 from December’s four-month low of 54.1. The latest reading signaled the 12th consecutive month of growth in private sector activity and the fastest expansion since October, driven by a sharp increase in new orders. New business rose the most in 16 months, supported by stronger demand, new product launches, and promotional events. In response to rising new orders, firms increased their staff at the fastest pace in three months. Meanwhile, purchasing activity rose for a fifth straight month. On prices, input cost and output charge inflation both increased above their respective long-run averages. Finally, business sentiment moderated. However, the confidence remained among the highest seen in the past year.

The S&P Global Singapore PMI slipped to 54.1 in December 2025 from 55.4 in the previous month, marking the lowest reading since August. Still, the latest result signaled the 11th straight month of growth in private sector activity, staying above the long-run trend. Both Output and new orders softened but remained firm, while employment fell fractionally for the first time since August, largely due to resignations. Purchasing activity strengthened, driving a solid build-up of inventories as supply chains stabilized after four months of delays. Simultaneously, margin pressures eased: output prices increased after November’s dip, and input cost inflation moderated. Supply chain efficiency improved, further supporting stock accumulation. Lastly, confidence rose above the series average, buoyed by expectations of stronger output in 2026 on growth plans and new product launches.