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02.07.202613:15:33UTC+00Singapore Manufacturing Activity at 2018-Highs

Singapore’s Manufacturing PMI climbed to 51.3 in June 2026 from 51.0 in May, marking an 11th straight month of expansion amid the ongoing AI boom. This was the highest reading since November 2018, underpinned by stronger growth in new orders, new export orders, factory output, input purchases, and employment. Sustained AI-driven demand for semiconductors continues to underpin solid production, firm order inflows, and rising order backlogs. However, inventories of finished goods have not kept pace, indicating that output is still lagging behind demand. Geopolitical tensions—though showing tentative signs of easing—continued to disrupt global supply chains, contributing to slower supplier deliveries and longer lead times. Meanwhile, the Electronics PMI, which represents roughly one-third of total manufacturing output, increased to 52.2 from 51.9, buoyed by the same AI-related demand. Looking ahead, sentiment remains upbeat, with the manufacturing sector expected to stay supported by robust demand for AI-focused electronics.

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