FX.co ★ Singapore Manufacturing Growth Stalls

Singapore's Manufacturing Purchasing Managers' Index (PMI) saw a slight dip of 0.1 point in October, settling at 50 compared to 50.1 in September, indicating a stagnation in the sector's expansion. This deceleration is primarily attributed to the electronics sector, which constitutes approximately 40% of the overall manufacturing output. The PMI for electronics decreased by 0.3 points, from 50.7 to 50.4, though it still marked its fifth consecutive month of growth. The nation's export-driven manufacturing sector has demonstrated resilience this year, partly bolstered by continuous demand linked to artificial intelligence. However, growth prospects could face challenges due to geopolitical tensions, U.S. tariffs, and specific duties on semiconductors. Although October witnessed a minor setback, the general recovery trend observed since April persists. Nevertheless, supplier and factory outputs have slipped back into contraction, and indicators for future business activities suggest diminishing momentum ahead.