The private-sector expansion in Singapore for September showed robustness, driven by a notable increase in new orders and the presence of extensive backlogs. The seasonally adjusted Singapore Purchasing Managers Index (PMI) recorded a value of 56.6 for September, down from 57.6 in August, yet it remains significantly above the neutral threshold of 50, which delineates growth from contraction.
This milestone marks the 19th consecutive month of expansion for Singapore's private sector. The PMI provides a comprehensive economic overview as it encompasses both the manufacturing and services segments. Notably, enterprises operating in the wholesale and retail trade sector experienced the most pronounced growth in both new business and activity levels during September. However, the rising influx of business led Singaporean companies to fall behind on their current workflows, which resulted in an increase in backlogs.
The accumulation of unfinished work intensified as new business inflows surged throughout the month. As a strategic response to growing operational demands, businesses in Singapore began increasing their staffing levels in September. Additionally, where feasible, companies opted to build up their inventories to better handle the anticipated workload. Despite operational challenges, inflation was a consistent theme within Singapore’s economic landscape in September, though it displayed a cooling trend compared to August.
Both the rates of overall input costs and output price inflation remained elevated, consistently exceeding their respective long-term averages. Looking ahead, private sector managers in Singapore expressed optimism regarding the forthcoming twelve months. Their confidence levels remained above historical averages, reflecting a positive outlook among firms regarding future business activity. The insights for the Singapore PMI were compiled through responses from a survey of 400 private sector companies, conducted from September 12 to September 24, illustrating a thorough assessment of the current economic climate..