Singapore: Manufacturing PMI falls slightly in March
Latest reading: The Singapore Institute of Purchasing and Materials Management (SIPMM) Manufacturing PMI declined marginally to 50.5 in March from 50.6 in February. As a result, the index signaled a softer improvement in manufacturing-sector operating conditions compared to the previous month. Meanwhile, the electronics PMI rose slightly to 51.4 in March (February: 51.3).
The latest PMI reading reflected slower growth in new orders, new exports, factory output, and employment. However, input purchases expanded at a faster rate, and there was a quicker increase recorded vs the prior month for finished goods, imports, order backlogs and future business.
Firms’ sentiment remained positive, supported by sustained demand for semiconductors, AI hardware and data-center components, despite heightened geopolitical uncertainties stemming from the U.S.-Iran war.
Panelist insight: UOB’s Jester Koh commented:
“AI-related tailwinds should continue to support the manufacturing sector in early 2026, although helium supply shortages stemming from the production halt at Qatar’s Ras Laffan facilities—which produce roughly 30% of global helium supply—could weigh on semiconductor production, given helium’s vital role.”