Singapore Private Sector Growth Slows

The S&P Global Singapore PMI eased to 56.7 in March 2026 from February’s near-record 59.2, but still signaled a 14th straight month of private sector expansion and remained well above its long-run average. Both output and new orders rose at softer rates, while buying activity slowed to a three-month low. Meanwhile, preproduction inventories rose rapidly, with the rate of accumulation accelerated to a pace not seen since data collection began more than 13 years ago. Hiring remained strong but moderated as backlogs accumulated less sharply. On prices, input cost inflation surged to a survey high, prompting firms to raise output charges at a substantial pace—slightly above February’s record—as businesses sought to protect margins by passing costs to customers. Finally, business sentiment held broadly steady and well above average, supported by strong pipelines and expectations of firmer demand ahead.

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.