Singapore's private sector witnessed a significant acceleration in growth in May, driven by a surge in new business and output, the latest S&P Global Singapore Purchasing Manager's Index (PMI) data showed on Wednesday. The headline PMI climbed to 54.2 in May, up from 52.6 in April, marking the 15th consecutive month of improvement. This represents a solid pace of expansion exceeding the long-term average. Output growth continued to accelerate for the 17th straight month, driven by an increase in new orders. Manufacturing firms experienced the highest level of activity growth compared to other sectors. New business also rose significantly, supported by better demand conditions and successful business development initiatives. The surge led to a backlog of work at the fastest pace in four months. Consequently, companies in Singapore added new staff to manage the increased workload. However, the rate of job creation was modest due to a tight labor market. Purchasing activity within Singaporean firms increased as businesses built up inventories to support growth. This marks the fastest rate of buying activity in 19 months, accompanied by a rise in stock levels. In May, prices continued to rise but at a slower rate, reaching a six-month low, mainly due to lower purchase cost inflation. Companies responded by slowing down the pace of price increases for their own goods and services. Despite the moderation, both input and output price inflation remained above their historical averages. Download
