Factory output, new orders support Singapore's modest PMI gain in August

Its Manufacturing PMI inched up to 51.5 from 51.4 in July. 

Singapore’s manufacturing activity edged higher in August, with the Purchasing Managers’ Index rising 0.1 point from the previous month to 51.5.

The improvement was attributed to new orders and exports, factory output, input purchases, and employment, according to the Singapore Institute of Purchasing and Materials Management (SIPMM).

Imports, input prices, and order backlogs also recorded stronger growth, it added. 

The latest reading marked the 13th consecutive month of expansion in the overall manufacturing sector.

Stephen Poh, SIPMM executive director, said the manufacturing sector remained supported by the artificial intelligence-led semiconductor upcycle, which has driven record order backlogs and employment.

“The deepening Middle East supply chain crisis continues to severely cripple supplier delivery times and send input prices, particularly energy costs, soaring,” Poh added.

However, supplier deliveries declined at a faster rate for the eighth consecutive month amidst prolonged lead times and global supply chain constraints. The finished goods index also contracted at a quicker pace.

The future business index remained in expansion territory for the 10th consecutive month.