Singapore Manufacturing PMI Signals Continued Expansion
2026-01-02 13:09
By
Dongting Liu
1 min. read
Singapore’s Manufacturing PMI edged up 0.1 point to 50.3 in December from 50.2 in November, marking the fifth consecutive month above the 50-point threshold and the highest reading since March 2025, signaling a modest but sustained expansion in manufacturing activity.
The increase was supported by stronger new orders and factory output.
The electronics sector, which accounts for roughly a third of manufacturing activity, remained the strongest performer, with its PMI climbing to 50.9 for the seventh straight month, underpinned by robust AI-related server demand and US tariff exemptions on electronics goods.
However, broader manufacturing momentum showed signs of slowing, with weaker growth in new export orders and input purchases, while employment conditions remained subdued, highlighting a divergence with the electronics segment.
Looking ahead, the electronics upcycle may face 2026 headwinds from US semiconductor tariffs, softer AI demand, and capacity and logistics constraints.