Factory activity in Singapore likely bottomed out, slow rebound seen

Easing financial conditions to give factories reprieve next year.

Manufacturing activity in Singapore has likely hit bottom and is expected to make a gradual recovery towards the middle of 2024, according to UOB.

UOB sees external demand for manufactured goods in the city-state to begin to slowly pick up next year on the back of an easing global financial environment. It said central banks in some advanced economies could even begin cutting interest rates as inflation slows down.

Latest industry survey showed that the Singapore manufacturing Purchasing Managers’ Index (PMI) expanded in the second month running in November at 50.3.

READ MORE: PMI edges up to 50.3 in November

Last month’s expansion was traced to improving electronics PMI, which rose for the first time after 15 months of consecutive contraction since July 2022. UOB noted the boost in global tech’s performance will support overall exports.

“In line with the improving manufacturing outlook, we expect the PMIs (especially electronics sector) to improve as well, although the near-term pace of increase may be curbed by external demand,” UOB said.

Despite the outlook of manufacturing activity looking up, it cautioned that foreign demand could be affected by elevated interest rates continued in the US and Europe, while China’s prolonged property crash continues to dampen consumer and business sentiments.

Follow the link for more news on

UOB

PMI

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia