Singapore: Manufacturing PMI rises in June
Latest reading: The Singapore Institute of Purchasing and Materials Management (SIPMM) Manufacturing PMI rose to 51.3 in June from 51.0 in May. As a result, the index moved further above the 50.0 no-change threshold, signaling a faster improvement in manufacturing-sector operating conditions compared to the previous month. Meanwhile, the electronics PMI rose to 52.2 in June (May: 51.9).
The latest PMI reading was driven by stronger growth in new orders, new exports, factory output, input purchases and employment. Meanwhile, overall input prices eased from last month, likely due to lower energy-related costs following June’s de-escalation in the U.S.-Iran conflict. Still, supplier delivery times lengthened for the sixth consecutive month, pointing to persistent supply-chain constraints, likely tied to continued disruption in the Strait of Hormuz. Finally, finished goods stocks returned to contraction.
Firms’ sentiment remained positive, underpinned by robust demand from the AI-driven technology upcycle, which continued to support the broader manufacturing outlook.
Panelist insight: Eleanor Dennison, economist at S&P Global Market Intelligence, said:
“The economy appears to be preparing for sustained strength in demand, having seen a noticeable improvement in the outlook, fresh hiring activity and attempts to bolster stocks ready for incoming new business.”
Alvin Liew from United Overseas Bank commented:
“Both the rise in the order backlog and the continued decline in stocks of finished goods sub-indices reflect inventory drawdown in response to order demand, suggesting that electronics production is still not keeping pace with demand. We believe that the greater scope to enhance capacity utilization should bode well for electronics manufacturing activity in the months ahead.”