Private sector PMI up to 53.7 in September

Thanks to higher output and new orders.

Things are looking up for the private sector as the Purchasing Managers’ Index (PMI) rose from 53.2 in August to 53.7 in September.

According to Nikkei Singapore PMI, the increase was supported by expansions in output and new orders.

Export sales also grew at a record pace.

Companies increased their workforce for the first time in four months, but backlogs made the boost insufficient to shoulder more workloads.

Greater demand also pressured the supply chain, intensifying cost pressures and price hikes.

Firms were less confident about business activity for the month.

IHS Markit principal economist Bernard Aw said, "Singapore’s private sector economy ended the third quarter with a burst of activity, as stronger demand took hold. The latest PMI survey signalled solid expansions in output and new orders. Notably, export sales increased at a record pace, lifted by increased orders to Asia and Europe."