Singapore Factory Sector Growth Hits Near One-Year High

Manufacturing activity in Singapore continued to expand in February, with the country’s Manufacturing Purchasing Managers’ Index (PMI) reaching its highest level in nearly a year, signaling resilience in the city-state’s industrial sector despite persistent global supply chain pressures.

According to the latest data released by the Singapore Institute of Purchasing and Materials Management, Singapore’s Manufacturing PMI edged up to 50.6 in February 2026, slightly higher than 50.5 in January, marking continued expansion in factory activity.

A PMI reading above 50 indicates growth in manufacturing conditions, while a figure below that threshold signals contraction.

The report showed that factory output and input purchases continued to expand, although at a slightly slower pace compared with the previous month. Meanwhile, the supplier deliveries index contracted for a second consecutive month, pointing to longer lead times across supply chains.

Analysts say these delays reflect lingering logistics constraints and cautious inventory management among manufacturers.

Despite these supply-side pressures, several indicators pointed to strengthening demand. Input prices, order backlogs, and business expectations all rose more quickly during the month, suggesting companies remain confident about future activity levels.

The finished goods index returned to expansion, while the future business index remained positive for a fourth consecutive month, reinforcing signs of sustained business optimism.

A key driver behind the sector’s resilience was the electronics industry, which accounts for roughly 30% of Singapore’s manufacturing output. The electronics PMI rose to 51.3 in February, up from 51.1 in January, supported by stronger growth in new orders and export demand.

Economists note that Singapore’s manufacturing sector plays a critical role in the broader Asian supply chain, particularly in semiconductors, precision engineering, and advanced electronics.

The continued expansion in factory activity signals that external demand — particularly from global technology markets — remains a supportive factor for Singapore’s industrial outlook, even as companies navigate supply chain adjustments and shifting global trade dynamics.