Singapore Private Sector Growth Hits 5-Month High

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.

Singapore’s S&P Global PMI rose to 57.4 in June 2026 from 56.7 in May, signaling another notable improvement in operating conditions. The expansion was primarily driven by sustained growth in new orders, supported by strong domestic demand, although output growth slowed to a 10-month low. The gap between output and new orders led to a significant increase in backlogs of work, which encouraged firms to expand their workforce, ending a two-month period of job shedding. Companies also increased their purchasing activity, allowing them to build up input inventories, resulting in a similarly sharp rise in pre-production stocks. In addition, vendors continued to keep pace with demand, as reflected in a third consecutive monthly improvement in suppliers’ delivery times. Meanwhile, overall cost inflation reached a new survey high, as stronger wage growth more than offset a slowdown in purchase price inflation. Finally, business confidence for the next 12 months improved noticeably.

Singapore’s S&P Global PMI eased to 56.7 in May 2026 from April’s near four-year high of 57.9. Still, the latest result marked the 16th straight month of expansion in private sector activity, with output growth accelerating to a three-month high. Meanwhile, new orders rose at the second-strongest pace on record despite cooling from April, underscoring resilient demand. Employment fell for a second month on cuts to temporary staff and voluntary exits, even as firms lifted purchasing at a record pace, with some stockpiling ahead of demand. On prices, input cost inflation hit a survey high, driven by supplier price hikes, rising fuel and transport costs, and a record surge in wages. Purchase cost inflation stayed elevated, its third-highest on record, but firms were less aggressive in passing costs on, with output charge inflation easing to a four-month low though still steep. Finally, business sentiment remained positive but softened from April’s elevated level.