Singapore Private Sector Growth Picks Up in June

Singapore’s S&P Global PMI fell to 58.1 in September 2026 from a record 59.4 in August, but still signaled another strong improvement in private-sector business conditions. Growth was supported by a marked rise in new orders, driven by robust demand, expanding customer bases and successful business development, which helped activity accelerate. Real estate and business services recorded the sharpest increases in both new orders and activity. Rising workloads prompted further hiring and purchasing, while firms also built inventories. However, supplier performance deteriorated sharply, with lead times lengthening at the fastest pace since early 2022. Cost pressures intensified, with input-price inflation reaching a survey record, prompting firms to raise output prices at one of the fastest rates on record. Despite these pressures, business confidence remained positive, supported by expectations of improving market conditions, new products and government initiatives.

Singapore’s S&P Global PMI edged up to 59.4 in August 2026 from 59.2 in July, signaling the most notable improvement in business conditions since May 2022. The upturn was driven mainly by a sharp increase in new orders, which offset a moderation in output growth to a 12-month low. Stronger inflows of new work led firms to increase capacity and input requirements. Hiring activity picked up sharply, the strongest recorded since February. Still, firms struggled to keep pace with mounting workloads, as evidenced by a steep rise in backlogged orders. Buying activity expanded further, while supplier lead times lengthened at a less severe pace than in July despite ongoing supply-chain disruptions. On prices, both purchase prices and employment costs continued to rise at elevated rates in August. Lastly, business confidence rose to its highest in four months amid upbeat projections for demand. Manufacturers expressed the strongest optimism, while services firms were the least confident.

Singapore’s S&P Global PMI climbed to 59.2 in July 2026 from 57.4 in June, marking the strongest expansion since February as output and new orders continued to grow at elevated rates. In response, firms increased workforce levels for a second consecutive month, while purchasing activity rose at the second-fastest pace on record, behind only June's peak. Hiring was partly due to persistent capacity pressures, as reflected in the continued accumulation of backlogs. Meanwhile, average supplier lead times lengthened for the first time since February due to customs-related issues and disruptions to shipping routes and port operations. On the pricing front, input costs rose sharply, driven mainly by higher purchasing and labor costs. However, output price inflation eased to its lowest level since January. Looking ahead, Singaporean firms remained optimistic about their output over the coming year.