FX.co ★ Singapore Manufacturing Remains Weak Despite PMI Uptick

In May 2025, Singapore's Manufacturing Purchasing Managers' Index (PMI) edged up marginally to 49.7 from 49.6 in April. This marks the second consecutive month of contraction following a period of growth lasting 19 months. Despite minor improvements in factory activity, the sector continued to show signs of weakness, primarily due to prevailing uncertainties, although there has been some relief with the easing of global trade friction. On May 12, an agreement between the United States and China to temporarily reduce several tariffs contributed to enhanced market trust. Additionally, the PMI for Singapore’s electronics sector saw a slight increase to 49.9 after concluding a 17-month period of expansion in March. While new export orders for both general manufacturing and electronics remained above contraction thresholds, they showed a decline from recent peaks. Employment figures and the business outlook remained subdued, reflecting ongoing concerns about future demand.