In brief
In October, Singapore’s private‑sector PMI dipped to 56.7, signalling a slowdown after 21 straight months above the break‑even line. Despite the dip, demand remains strong and forward‑looking indicators suggest near‑term growth will continue. Input costs and output prices are still rising, but inflation is easing relative to September.
Singapore’s private sector growth slowed to a five‑month low in October, falling to a seasonally adjusted Purchasing Managers’ Index (PMI) of 56.7 from 58.1 in September, according to new data released by S&P Global and reported by Xinhua on Nov. 4.
Although the PMI remains above the 50 no‑change threshold for the 21st consecutive month, the decline marks the lowest reading in five months, signalling a moderation in the pace of business activity.
Jingyi Pan, economics associate director at S&P Global Market Intelligence, 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."
"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,"
She added that strong demand underpinned growth in employment and purchasing activity during the month.
"Strong demand underpinned growth in employment and purchasing activity,"
Pan also noted that "overall input costs and output prices continued to rise, although inflation rates eased from September's levels."
"Overall input costs and output prices continued to rise, although inflation rates eased from September's levels,"
Despite the operational‑constraints‑driven slowdown, forward‑looking indicators—new orders, backlog of work and future output indices—"all hinted at continued business activity growth in the near term," Pan said.
These data suggest that while businesses are experiencing a modest slowdown, underlying demand and future expectations keep the economy on an upward trajectory.