Singapore’s Manufacturing PMI inched up to 51.5 in August 2026 from 51.4 in July, extending its streak of consecutive monthly expansion to just over a year and matching the level last seen in November 2018. The improvement was underpinned by solid external demand for memory chips, particularly from major US hyperscalers.
The Electronics PMI, which accounts for more than one-third of total manufacturing output, rose to 52.6 from 52.4. Electronics are expected to remain the main growth driver, having pushed order backlogs to record highs and supported robust employment.
However, the conflict in the Middle East continues to weigh on the sector, lengthening supplier delivery times and driving up input costs, especially for energy. At the same time, firms are continuing to run down finished-goods inventories, highlighting capacity constraints amid recent softness in electronics non-oil domestic exports and industrial production.
Looking ahead, manufacturers remain optimistic about operating conditions, with the future business index expanding for the tenth consecutive month.