Singapore's SIPMM Manufacturing PMI for December 2025: Modest Expansion Amid Mixed Signals
Key Takeaways: Singapore’s SIPMM Manufacturing PMI edged up to 50.3 in December 2025, slightly surpassing November’s 50.2 and beating the 50.6 consensus estimate. This marks a continuation of marginal expansion in the manufacturing sector after several months hovering near the 50 breakeven mark. While the reading signals resilience, underlying pressures from global uncertainties and tighter financial conditions temper optimism. The manufacturing sector’s trajectory remains vulnerable to external shocks and evolving monetary policy dynamics.
Table of Contents
Singapore’s SIPMM Manufacturing PMI for December 2025 registered at 50.3, up modestly from November’s 50.2 and October’s 50.1. This marks the third consecutive month of readings above the 50 threshold, indicating slow but steady expansion in the manufacturing sector. The 12-month average PMI stands at 50.0, underscoring a broadly stable manufacturing environment over the past year.
Drivers this month
- Steady output growth supported by electronics and precision engineering segments.
- New orders showed slight improvement, reflecting cautious optimism among exporters.
- Input price pressures eased marginally, helping to stabilize margins.
Policy pulse
The PMI reading remains consistent with the Monetary Authority of Singapore’s (MAS) calibrated approach to monetary policy. Inflationary pressures have moderated, but global uncertainties and supply chain disruptions continue to pose risks. The MAS’s stance to maintain a modest appreciation of the SGD nominal effective exchange rate aligns with the manufacturing sector’s need for competitiveness.
Market lens
Following the PMI release, the SGD/USD pair showed a mild appreciation of 0.15%, reflecting confidence in Singapore’s economic resilience. Short-term government bond yields remained stable, while equity markets in Singapore exhibited cautious gains.
The manufacturing PMI is a leading indicator of industrial activity, closely tied to broader macroeconomic variables. Singapore’s GDP growth for Q4 2025 is projected at 2.5% year-on-year, supported by manufacturing and services sectors. Inflation has moderated to 2.1% in December, down from 2.5% in November, easing pressure on real incomes and business costs.
Monetary policy & financial conditions
The MAS’s recent policy statement emphasized a neutral stance, with no immediate tightening expected. Financial conditions remain moderately tight due to global rate hikes by major central banks. The Singapore dollar’s strength helps contain imported inflation but weighs on export competitiveness.
Fiscal policy & government budget
Singapore’s fiscal policy remains supportive, with the 2026 budget allocating SGD 5 billion towards innovation and green manufacturing initiatives. This fiscal stimulus aims to boost productivity and long-term competitiveness amid global uncertainties.
External shocks & geopolitical risks
Heightened geopolitical tensions in East Asia and supply chain disruptions from intermittent lockdowns in key trading partners pose downside risks. The manufacturing PMI’s modest expansion reflects cautious business sentiment amid these external headwinds.
What This Chart Tells Us
The PMI’s upward trend, though modest, suggests manufacturing is navigating global headwinds with resilience. The sector is reversing a two-month stagnation, but momentum remains fragile. Continued monitoring of new orders and input costs will be critical to assess sustainability.
Market lens
Immediate reaction: SGD/USD appreciated 0.15% within the first hour post-release, reflecting market relief at the stable PMI reading. Singapore’s 2-year government bond yields held steady near 2.1%, while the STI index gained 0.3%, signaling cautious optimism.
Looking ahead to Q1 2026, Singapore’s manufacturing sector faces a mixed outlook. The baseline scenario projects continued modest expansion with PMI readings hovering between 50.2 and 50.5, supported by stable global demand and easing supply chain constraints.
Bullish scenario (20% probability)
- Global demand rebounds sharply, especially in electronics and biomedical sectors.
- Supply chain normalizes, reducing input costs and boosting margins.
- PMI rises above 51.0, signaling stronger growth momentum.
Base scenario (60% probability)
- Manufacturing growth remains steady but modest, with PMI around 50.3–50.5.
- Monetary policy remains neutral, and fiscal support continues.
- External risks persist but are contained.
Bearish scenario (20% probability)
- Geopolitical tensions escalate, disrupting trade flows.
- Global recession fears dampen demand, pushing PMI below 50.
- Input costs rise sharply, squeezing margins and employment.
Singapore’s SIPMM Manufacturing PMI for December 2025 confirms a fragile but ongoing recovery in the manufacturing sector. The slight uptick to 50.3 reflects resilience amid global uncertainties and tighter financial conditions. Policymakers face the challenge of balancing inflation control with growth support. Businesses should prepare for a cautious environment, with upside potential hinging on external demand and supply chain normalization.
Continued vigilance on geopolitical developments and monetary policy shifts will be essential. The manufacturing sector’s performance remains a bellwether for Singapore’s broader economic health as it navigates a complex global landscape.
Key Markets Likely to React to SIPMM Manufacturing PMI
The SIPMM Manufacturing PMI is a critical gauge of Singapore’s industrial health, influencing currency, equity, and bond markets. Traders and investors closely watch this indicator for signals on economic momentum and policy direction. The following markets historically track PMI movements and are expected to react to the latest release:
- SGDUSD – The Singapore dollar’s exchange rate against the US dollar often moves in tandem with PMI shifts, reflecting trade and economic sentiment.
- STI – Singapore’s Straits Times Index is sensitive to manufacturing sector performance, impacting investor confidence.
- DBS – As a major Singaporean bank, DBS’s stock price correlates with economic growth and credit demand linked to manufacturing.
- BTCUSD – Bitcoin’s price can reflect broader risk sentiment, which is influenced by economic data like PMI.
- EURUSD – The Euro/US Dollar pair often reacts to global economic data, including Singapore’s PMI, as a proxy for Asia-Pacific trade conditions.
Insight: SIPMM Manufacturing PMI vs. SGDUSD Since 2020
Since 2020, the SIPMM Manufacturing PMI and SGDUSD exchange rate have shown a positive correlation. Periods of PMI expansion above 50 generally coincide with SGD appreciation against the USD, reflecting stronger trade flows and investor confidence. Notably, during the pandemic recovery in 2021, PMI spikes aligned with SGDUSD rallies. This relationship underscores the PMI’s role as a barometer for Singapore’s economic health and currency strength.
Frequently Asked Questions
- What is the SIPMM Manufacturing PMI and why does it matter?
- The SIPMM Manufacturing PMI measures the health of Singapore’s manufacturing sector. A reading above 50 indicates expansion, while below 50 signals contraction. It is a leading economic indicator influencing policy and markets.
- How does the December 2025 PMI compare to previous months?
- December’s PMI of 50.3 shows a slight improvement from November’s 50.2 and October’s 50.1, continuing a trend of modest expansion after several months near the breakeven point.
- What are the main risks to Singapore’s manufacturing outlook?
- Key risks include geopolitical tensions, supply chain disruptions, and tighter global financial conditions, which could dampen demand and increase costs, potentially pushing PMI below 50.
Takeaway: Singapore’s manufacturing sector remains on a cautious growth path, with the December 2025 PMI signaling resilience but highlighting vulnerabilities to external shocks and policy shifts.
Updated 1/2/26
This has been drafted with AI assistance and then thoroughly reviewed, refined, and approved by our human editorial team to ensure accuracy, and originality.









The SIPMM Manufacturing PMI for December 2025 rose slightly to 50.3, compared to November’s 50.2 and October’s 50.1. This figure is marginally above the 12-month average of 50.0, signaling a stable but slow expansion in Singapore’s manufacturing sector.
Output and new orders components showed incremental improvements, while supplier delivery times and input prices stabilized. The employment sub-index remained flat, indicating steady labor demand amid cautious hiring.