Singapore's manufacturing sector has shown signs of stabilization, according to the latest S&P Global Purchasing Managers' Index (PMI) released on September 2, 2025. The index, which measures the health of the manufacturing sector, moved up slightly from 49.9 in July to 50.0 in August. This uptick suggests that the sector has reached a point of stabilization, with the index hitting the threshold that signifies no change in activity.
A PMI reading above 50 typically indicates an expansion in the manufacturing sector, while a reading below 50 signifies contraction. The marginal increase to 50.0 in August is a positive signal of stabilization, reflecting balanced conditions after a prior period of slight contraction in July.
The improvement comes amid a challenging global economic landscape, and these numbers could provide a breath of relief for businesses reliant on manufacturing production. As manufacturing is an integral part of Singapore's economic framework, stakeholders will be keenly watching for further trends that this neutral stance might grade into, indicating either a forthcoming rebound or further stagnation in the following months.
