Singapore's private sector growth accelerates in July

Business conditions in Singapore's private sector improved further at the start of the third quarter, with the seasonally adjusted Purchasing Managers' Index (PMI) rising to 52.7 in July, up from 51.0 in June, according to a recent report released by S&P Global.

A PMI reading above 50 indicates expansion, while a reading below 50 suggests contraction. The latest figure marks the sixth consecutive month of growth and is the highest reading in three months, surpassing the long-run average.

The report highlighted accelerating growth in both new orders and business activity, alongside a rise in business confidence. In response, firms increased staffing levels for the first time this year, although backlogs of work continued to build.

"Overall output rose at the fastest pace so far this year, supported by robust demand for Singaporean goods and services," said Jingyi Pan, economics associate director at S&P Global Market Intelligence. "Additionally, business sentiment picked up further from the low in May, with confidence rising to the highest level since March."

"Some pressure on margins was observed in the latest survey as reports of a competitive environment limited companies' ability to raise costs despite input price inflation jumping to a six-month high in July," Pan added.

Source: Xinhua