Singapore Manufacturing Activity Edges Up in July

Singapore's Manufacturing PMI edged up to 51.4 in July 2026 from 51.3 in June, marking a 12th consecutive month of expansion and the highest reading since November 2018, supported by the ongoing AI-driven semiconductor boom. Growth in new orders, export demand, input purchases and employment strengthened, while factory output expanded at a slower pace (50.8 vs 51.1). Supplier deliveries remained under pressure, with the index falling to 47.8 from 48.3, indicating a seventh straight month of longer lead times amid escalating supply chain disruptions following the collapse of the Middle East ceasefire. Meanwhile, the Electronics PMI, which accounts for more than one-third of manufacturing output, rose to 52.4 from 52.2, also supported by AI-related demand. The future business index remained in expansion territory, underscoring manufacturers' continued confidence in business conditions.

Singapore's Manufacturing PMI rose to 51.3 in June 2026 from 51.0 in May, marking the 11th consecutive month of expansion amid the ongoing AI boom. The reading was the highest since November 2018, driven by stronger growth in new orders, new export orders, factory output, input purchases, and employment. Robust AI-driven semiconductor demand continues to support strong production and order inflows, and rising order backlogs. However, finished goods inventories lagged, reflecting that production has yet to keep pace with demand. Geopolitical tensions, although potentially easing, continued to disrupt global supply chains, resulting in slower supplier deliveries and longer lead times. Meanwhile, the Electronics PMI, which accounts for about one-third of manufacturing output, rose to 52.2 from 51.9, supported by the same AI-driven demand. Looking ahead, sentiment remains positive, with the manufacturing sector expected to stay supported by strong demand for AI-related electronics.

Singapore’s Manufacturing PMI rose to 51.0 in May 2026 from 50.7 in April, marking its highest reading since December 2024 and extending the sector’s expansion streak to ten consecutive months. The improvement was driven by stronger growth in new orders, export demand, factory output, input purchases, and employment. The future business expectations index remained in expansion territory for a seventh straight month, pointing to continued optimism among manufacturers. The electronics sector, which accounts for around 40% of Singapore’s manufacturing output, also strengthened, with its PMI rising to 51.9 and extending its growth streak to twelve months. Despite the positive momentum, firms continued to face rising input costs and supply-chain constraints, as supplier delivery times lengthened for a fifth consecutive month. Still, growing order backlogs and improving business sentiment suggested manufacturers remained cautiously optimistic about near-term growth prospects.