Singapore PMI ticks up to 51.7 on continued AI-related demand
But rising input costs and prolonged supplier lead times are intensifying operational pressures
Singapore's manufacturing activity surged slightly in September, driven by a robust demand for artificial intelligence-related products. The purchasing managers' index (PMI) rose 0.2 points from August to 51.7, marking 14 consecutive months of expansion. The electronics sector, a crucial component of Singapore's manufacturing industry, expanded at an even faster pace, with the PMI for this sector increasing to 52.9, marking its 16th consecutive month of growth.
This strong performance in electronics is supporting overall order, production, and employment growth. The electronics sub-index, however, fell to 48.7, indicating weaker demand for finished goods despite rising production. Supply-side disruptions and higher import costs have put pressure on manufacturers, leading to declining deliveries and supplier lead times.
Despite these challenges, the overall positive sentiment among Singapore's manufacturers is expected to persist, although unevenness will likely continue within the sector. Meanwhile, manufacturing activity in neighboring countries like the Philippines, Malaysia, and Thailand has also reported mixed results, with some experiencing growth while others faced contraction.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
