The Singapore Institute of Purchasing and Materials Management (SIPMM) has released the September 2025 Purchasing Managers’ Index (PMI), revealing a further contraction in the manufacturing sector. The PMI, a key indicator of manufacturing activity, registered a decline, marking the fourth consecutive month of contraction. This downturn is attributed to a decrease in new orders and production output.
The PMI for September stood at 49.5, down from 49.9 in August, indicating a contraction as it remains below the 50-point threshold that separates expansion from contraction. The decline is primarily driven by weaker demand in both domestic and export markets, as well as supply chain disruptions.
SIPMM noted that the electronics sector, a significant component of Singapore’s manufacturing industry, also experienced a contraction, with its PMI falling to 49.2. This marks a decrease from the previous month’s 49.7, reflecting challenges in global semiconductor demand and supply chain constraints.
“The continued contraction in the manufacturing sector underscores the challenges faced by the industry amidst global economic uncertainties,” SIPMM stated. The organisation emphasised the need for manufacturers to adapt to changing market conditions and explore opportunities for innovation and efficiency improvements.
Looking ahead, the outlook for Singapore’s manufacturing sector remains cautious. Whilst some recovery is anticipated as supply chain issues are addressed, the sector’s performance will largely depend on global economic conditions and demand recovery.
