Singapore factory activity rises for fifth straight month

The index is a barometer of the overall manufacturing industry’s health. A PMI reading above 50 indicates growth, while one below suggests a contraction in output.

Singapore’s strong PMI readings follow the trend in the Asian region, as key economies expanded factory activity in December.

Taiwan and South Korea led a rebound in Asia’s manufacturing activity, with firms heading into 2026 with optimism that global demand is weathering US President Donald Trump’s war on free trade, Reuters and Bloomberg reported.

China’s data readings also showed an unexpected turnaround in factory activity in the world’s second-largest economy, helped by a pre-holiday surge in orders, they noted.

Singapore’s latest performance was driven by stronger growth in new orders and factory output, said SIPMM.

However, slower rates of expansion were recorded for the indexes of new exports and input purchases. Meanwhile, the employment index still contracted, although at a slower rate.

Slower expansion rates were also recorded for the indexes of finished goods, imports and input prices, while the order backlog index posted a faster rate of contraction. — The Straits Times/ANN