FX.co ★ Singapore Manufacturing PMI Returns to Neutral Territory

In August, Singapore's Manufacturing Purchasing Managers' Index (PMI) slightly increased to 50.0 from 49.9 in July, indicating a return to neutral growth as global trade tensions and US tariff uncertainties showed signs of stabilization. This provided a modest boost to exports. The electronics sector, which represents approximately 40% of total manufacturing output, saw its PMI rise to 50.4 from 50.2 in July, marking the third consecutive month of expansion. This growth was fueled by robust demand linked to the ongoing artificial intelligence surge. The improvement in the broader manufacturing sector was primarily driven by accelerated growth in new exports, new orders, and input purchases. Additional growth was evident in finished goods, imports, and supplier delivery rates. However, while order backlogs continued to increase, they did so more gradually. Factory output and employment contracted but at a slower rate than before. Notably, a sub-index measuring future business expectations remained in contraction and declined more sharply in August, suggesting that companies remain cautious in light of persistent uncertainties.