Singapore factory activity expands for 14th month as PMI hits 51.7 in September

  • Singapore manufacturing expanded for a 14th consecutive month in September.
  • The PMI rose to 51.7, its highest reading since October 2018.
  • Singapore’s electronics sector recorded a PMI of 52.9 for its 16th straight expansion month.

Singapore’s manufacturing activity expanded for a 14th consecutive month in September, with the purchasing managers’ index (PMI), a gauge of factory conditions, rising to 51.7 from 51.5 in August. It was the highest reading since October 2018. Electronics, which represents 40% of Singapore’s manufacturing output, led the advance with a PMI of 52.9 and extended its expansion streak to 16 months, supported by sustained global demand linked to artificial intelligence. Stronger new orders, export orders, output, input inventories and employment also lifted the overall index. However, supplier deliveries deteriorated for a ninth straight month, while rising input costs, longer lead times, growing order backlogs and falling finished-goods inventories pointed to persistent supply constraints. Economists linked the strength to continued AI and electronics growth, China’s return to expansion, robust US growth, and manufacturing gains in South Korea and Taiwan. The outlook remains mixed: Singapore’s future business index expanded for an 11th consecutive month, but analysts warned that energy and material costs, supply disruptions and Middle East-related feedstock shortages could contribute to a manufacturing slowdown in the fourth quarter.

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Singapore factory activity expands for 14th month as PMI hits 51.7 in September - CoinPost Terminal