Singapore Manufacturing Growth Picks Up in September

Singapore's Manufacturing PMI edged up to 51.7 in September 2026 from 51.5 in August, marking 14 consecutive months of expansion and the highest reading since October 2018, supported by still strong AI-related demand. The Electronics PMI, which accounts for more than one-third of manufacturing output, rose to 52.9 from 52.6, a 16th straight month of growth and the strongest since January 2018, as the sector supported stronger orders, factory output and employment. Order backlogs continued to build while finished goods inventories declined for an 11th consecutive month, reflecting supply-side disruptions and higher import costs rather than weaker demand. Meanwhile, supplier deliveries lengthened for a ninth straight month and rising input costs intensified operational pressures, particularly for chemicals and petrochemicals.

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.

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.