Singapore Manufacturing Growth Slows in October

Singapore’s Manufacturing PMI eased to 51.4 in October 2026 from 51.7 in September, marking 15 consecutive months of expansion, though at a slower pace as growth in new orders, factory output, input inventories and employment moderated. The Electronics PMI, which accounts for more than one-third of manufacturing output, fell to 52.5 from 52.9, still supported by AI-related demand, with the sector’s new export orders index rising to 53.2, the highest since May 2018. Imports and order backlogs also expanded more slowly, while new exports and input prices picked up slightly. Meanwhile, finished goods inventories declined at a softer pace and supplier deliveries contracted much more slowly, indicating fewer delivery delays, although renewed Middle East shipping disruption could still constrain output.

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.