S&P Global: Singapore’s private sector growth slows in Dec ’24

Singapore’s private sector saw a slowdown in growth at the end of 2024, according to the latest S&P Global Singapore PMI® data. The Purchasing Manager’s Index (PMI) dropped to 51.5 in December, down from 53.9 in November, signaling the weakest pace of expansion since July 2023.

While business activity improved at a modest rate for the 22nd consecutive month, growth in new business and output decelerated, and outstanding business rose only marginally.

The finance and insurance sectors saw the fastest growth in new orders, but manufacturing and construction experienced declines. Firms also reduced staffing levels for the first time since April, and purchasing activity fell for the second consecutive month.

Despite a dip in growth, business confidence rose above the long-term average, with optimism for 2025. Selling price inflation eased to a six-month low, signaling relief from cost pressures. However, input costs remained elevated, driven by material and shipping price hikes.

Economics Associate Director at S&P Global, Jingyi Pan, noted that while output growth slowed, improved business sentiment could lead to stronger growth and employment in the new year.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama