Singapore’s private sector expanded at its fastest pace in a year in September. The S&P Global Singapore Purchasing Managers’ Index (PMI) rose sharply to 56.4 from 51.2 in August.
This was the eighth consecutive month of stronger business conditions, supported by a surge in new orders and output growth. Companies credited the rise to stronger demand and effective marketing campaigns.
Firms also resumed hiring in September after job cuts in August. Despite solid employment gains, workloads increased, and backlogs grew at the fastest pace in a year.
Purchasing activity picked up for the first time since May, driving the first rise in inventories in five months. Some businesses reported building safety stocks due to longer supplier delivery times, which extended at the sharpest pace so far this year.
Input costs accelerated, with inflation hitting its highest level since January. Companies reported higher expenses for materials, utilities, and wages. To offset this, they raised selling prices at the fastest pace since January.
Business confidence also improved to the highest level in nearly a year. Companies expressed optimism about expansion plans and stronger economic activity boosting future sales.
Jingyi Pan, Economics Associate Director at S&P Global Market Intelligence, said September’s data confirmed a sharp private sector rebound at the end of the third quarter. Pan noted that while U.S. tariffs weighed on August results, demand bounced back in September. She added that growth looks set to continue into Q4, although rising price pressures could impact sales if they persist.
