In brief
Singapore's PMI dropped to 56.7 in October from 58.1 in September, its lowest level in five months, yet remains above the 50 threshold for the 21st straight month. S&P Global said the index remained robust amid strong demand, with employment and purchasing activity up. Forward‑looking indicators suggest that growth could resume in the near term.
According to Xinhua, Singapore's private‑sector Purchasing Managers' Index (PMI) fell to a five‑month low of 56.7 in October, signalling a slowdown in growth while activity still expanded at a robust pace.
The composite indicator, released by S&P Global, dropped from 58.1 in September but stayed above the 50 level that marks no change in conditions for the 21st straight month.
In a statement, S&P Global said the PMI data reflected a continued improvement at a robust pace at the start of the fourth quarter and that strong demand underpinned growth in employment and purchasing activity during the month.
Jingyi Pan said: "The latest S&P Global Singapore PMI data revealed that business conditions continued to improve at a robust pace at the start of the fourth quarter. Strong demand underpinned growth in employment and purchasing activity during the month. Overall input costs and output prices continued to rise, although inflation rates eased from September's levels. Despite the operational‑constraints‑driven slowdown in business activity growth, forward‑looking indicators, including the new orders, backlogs of work and future output indices, all hinted at continued business activity growth in the near term."
The report noted that input costs and output prices were still rising, though inflation rates had eased relative to September.
Forward‑looking indicators such as new orders, work backlogs and future output suggest that this slowdown may not be sustained and that business activity could resume growth shortly.
The fact that the PMI remained above 50 indicates that private‑sector activity continued to expand rather than contract.
Over the past 21 months, the PMI has consistently stayed above the 50 threshold, underscoring a prolonged period of private‑sector expansion since the start of 2026.
The Singapore PMI is a composite indicator of private‑sector performance, reflecting factors such as employment, new orders, purchases and price indices.
The decline from 58.1 in September to 56.7 in October underscores a slowdown in the speed of private‑sector growth, although the overall level of activity remains strong.
Xinhua's report, released on Wednesday, provides the latest snapshot of Singapore's private sector activity.
