Singapore Manufacturing Growth Holds Steady
2026-09-02 13:19
By
Larissa Caser
1 min. read
Singapore's Manufacturing PMI edged up to 51.5 in August 2026 from 51.4 in July, marking just over a year of consecutive monthly expansion and matching the reading from November 2018, supported by strong external demand for memory chips, particularly by major US hyperscalers.
The Electronics PMI, which accounts for more than one-third of manufacturing output, rose to 52.6 from 52.4, as electronics are expected ro remain the main driver, having lifted backlog of orders to record levels and keeping employment robust.
Nevertheless, the conflict in the Middle East remains a drag, deepening supplier delivery times and causing input prices to surge, particularly energy.
Firms continue to draw down fineshed goods inventories, reflecting capacity constraints linked to recent weakeness in electronics non-oil domestic exports and industrial production.
Looking ahead, manufacturers remain optimistic in operating conditions, with the future business index expanded for the 10th straight month.