FX.co ★ Singapore Manufacturing PMI Rebounds in June

Singapore’s Manufacturing Purchasing Managers’ Index (PMI) experienced a slight uptick, rising to 50 in June from 49.7 in May, thereby ending a two-month period of contraction. This growth was largely attributed to companies possibly accelerating orders in anticipation of upcoming U.S. tariff deadlines. The improvement was driven by a quicker expansion in new orders, new exports, and input purchases. Concurrently, the PMI for the electronics sector increased to 50.1 in June, up from 49.9 in May, indicating a return to growth and reflecting heightened market sentiment and business confidence. Despite these positive indicators, frequent changes in global trade policies and tariffs continue to disrupt supply chains, leading to a cautious outlook among local manufacturers. With the ongoing uncertainty surrounding tariffs, Singapore’s trade-reliant economy is facing increasing risks, particularly as a 10% U.S. tariff on its exports is set to be implemented next week following a 90-day postponement.