Singapore Sustains Private-Sector Expansion in March: PMI Report

Singapore's private sector sustained an expansion in March, despite some slowing in consumer services, reported S&P Global on Monday.

The city-state's purchasing managers index (PMI) logged at 56.7 in March, down from 59.2 in February, but still well above the 50-mark that separates growth from contraction, reported S&P Global, citing its monthly survey.

"Although down from February's recent highs, overall growth in (Singapore's) output and new work remained elevated by historical standards," said S&P Global. "Hiring activity rose sharply, though at a slower rate than in February as the accumulation in backlogs was less marked."

S&P Global only produces a single monthly PMI report for Singapore, unlike for other nations, for which separate monthly services- and manufacturing-sector PMI reports are published.

Despite some easing in demand, Singapore enterprises reported mounting backlogs in March. "The rate of accumulation (of backlogs) was still elevated by historical standards and sharp overall," explained S&P Global.

Singapore business managers reported rising costs of operation in March. "Upward pressure on costs reportedly came from a variety

of sources, including fuel, foodstuffs, utilities, rent, transportation, raw materials, shipping and airfares. The rate of input price inflation hit an all-time survey high," noted S&P Global.

To compensate for higher costs of operation, Singaporean businesses raised selling prices, and "often linked this to efforts to protect margins by passing the cost burden to customers," said S&P Global.

At the sector level in Singapore in March, manufacturing led the expansion, while consumer services recorded the softest uptick, added S&P Global.

Despite challenges of higher operating costs, Singapore businesses remained upbeat in March.

"Strong pipelines of work ahead and hopes for a pick-up in demand underpinned positivity at firms," said S&P Global.

The Singapore PMI was compiled by S&P Global from surveys sent to 400 private-sector companies from March 12 through March 25.