Singapore Private Sector PMI Drops to 4-Month Low

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.

The S&P Global Singapore PMI eased to 55.4 in November 2025 from 57.4 in October, but marked the tenth consecutive month of private sector expansion. Despite the softer headline reading, overall business conditions continued to improve, with output rising at the fastest pace since October 2022 on strong new work inflows, supported by project launches and effective marketing. Purchasing activity also increased, though inventories fell amid shipment delays. Additionally, employment rose for a third month, while backlogs built at the quickest rate in over three years. On prices, input costs climbed at the sharpest pace since January due to higher purchase prices, wages, and shipping expenses. Despite this, firms cut selling prices to support demand. Finally, business sentiment stayed positive but eased to a three-month low, with companies expecting internal expansion and better market conditions to underpin growth.