Singapore Manufacturing Activity Expands as AI Demand Supports Growth

By Amanda Lee

SINGAPORE--Singapore's manufacturing activity expanded for a 14th consecutive month in September, with growth accelerating as demand for artificial intelligence-related products supported the sector.

The purchasing managers index, compiled by the Singapore Institute of Purchasing and Materials Management, rose to 51.7 in September from 51.5 in August. A reading above 50 signals expansion, while a reading below 50 indicates contraction.

The increase reflected faster growth in new orders, new exports, factory output, input inventories and employment, SIPMM said Friday.

The PMI for electronics, which accounts for about one-third of Singapore's manufacturing output, rose to 52.9 in September from 52.6 in August. AI-related demand is supporting stronger orders, production and employment, said Stephen Poh, SIPMM's executive director.

However, rising input costs and longer supplier delivery times are adding to operational pressures, Poh said. Growing order backlogs and shrinking inventories of finished goods suggest manufacturers are working to meet demand while managing persistent supply constraints, he added.

The supplier deliveries index contracted at a faster pace, marking its ninth consecutive month of contraction. Still, the future business index signaled optimism for an 11th straight month, reflecting manufacturers' confidence in near-term conditions.

Looking ahead, Singapore's manufacturing output is likely to grow unevenly, DBS senior economist Chua Han Teng said in a recent note. Strong demand for AI hardware are supporting some segments, while rising costs and supply disruptions are weighing on others.

Write to Amanda Lee at amanda.lee@wsj.com

(END) Dow Jones Newswires

October 02, 2026 08:14 ET (12:14 GMT)