In brief
The S&P Global Singapore PMI slipped to 56.7, its nadir in five months, but remains the 21st straight month above the 50 no‑change line, indicating sustained activity. Economics associate director Jingyi Pan highlighted robust demand and rising employment, while noting tighter input costs. Forward‑looking indicators, including new orders and work backlogs, suggest near‑term growth will continue despite the slowdown.
Singapore’s private‑sector Purchasing Managers’ Index slid to a five‑month low of 56.7 in October, the latest figure released by S&P Global on Wednesday, signaling a deceleration in growth while keeping activity above the no‑change threshold.
The seasonally adjusted composite PMI fell from 58.1 in September to 56.7 in October, but the indicator has remained above the 50 line for 21 consecutive months, underscoring a steady pace of business activity in the region.
Jingyi Pan, economics associate director at S&P Global Market Intelligence, said the 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." She added that "overall input costs and output prices continued to rise, although inflation rates eased from September’s levels."
Pan also pointed to forward‑looking indicators: "Despite the operational‑constraints‑driven slowdown in business activity growth, new orders, backlogs of work and future output indices all hinted at continued business activity growth in the near term."
Input costs and output prices did climb during the month, a trend that aligns with the sector’s ongoing demand, even as inflation shows signs of moderating compared to September.
Although the PMI drop marks a slowdown, the persistent above‑50 reading demonstrates that Singapore’s private sector remains in an expansionary zone, a benchmark closely watched by economists and policymakers alike as an early gauge of economic health.