FX.co ★ Singapore Factory Activity Growth Hits 10-Month High

Singapore's Manufacturing Purchasing Managers' Index (PMI) advanced to 50.5 in January, improving slightly from December's figure of 50.3. This marks a six-month period of modest expansion, with the latest number representing the highest reading since March of the previous year. The uptick was primarily attributed to increases in new orders, exports, and production levels. Nonetheless, manufacturers continue to grapple with capacity limitations and disruptions in supply chains. "The decision to bypass Red Sea and Suez Canal routes has resulted in extended transit times and slower schedule turnovers," observed Stephen Poh, Executive Director of SIPMM. Meanwhile, the electronics sector's PMI, which constitutes roughly a third of Singapore's total output, rose to 51.1 from December's 50.9. This growth was spurred by escalating demand for AI-related memory chips, leading to boosts in new orders, exports, production, input purchases, and employment.