Entering text into the input field will update the search result below

Singapore's Private Sector Economy On Course For Best Quarter Since Mid-2014

Mar. 06, 2018 10:40 AM ETEWS, SGF, EWSS
Markit profile picture
  • February PMI signals a solid improvement in business conditions

  • Jobs growth among the fastest in recent years

  • Business confidence remains upbeat

  • Input costs rise sharply, driven by strong wage growth

Singapore's private sector economy is on course for its best quarterly gain in almost four years, after showing a strong improvement in business conditions during February, according to Nikkei PMI data. However, the upturn was marred by strong inflationary pressures.

Domestic-Led Growth

The headline Nikkei Singapore PMI™ rose from 53.6 in January to 55.3 in February, signalling one of the strongest improvements in the health of the private sector in the past four years. The latest reading took the average PMI so far in the first quarter to the highest since Q2 2014.

Singapore PMI And Economic Growth

Both output and new orders grew strongly, with survey data suggesting that domestic demand was a key driver in February. Export growth slowed to a six-month low. Business confidence remained positive, boding well for economic activity in coming months.

New Business

Overall, the latest Nikkei Singapore PMI is running at a pace broadly consistent with a GDP annual growth rate of around 4% in February, presenting an upside risk to the government's forecast range of 1.5% to 3.5% for 2018 GDP.

Strong Job Gains

Labour market prospects meanwhile continued to brighten in February amid robust economic growth. The pace of job gains was among the fastest in the survey history (since August 2012) and accompanied by strong wage growth, reflecting the recent tightening of the labour market. With further evidence of rising capacity pressure, hiring sentiment will likely remain buoyant in the months ahead.

Strong Wage Pressure

Companies continued to struggle with rising costs, especially in terms of staff overheads. The overall rate of input price inflation struck a survey-record high during February. Notably, wage

This article was written by

Markit profile picture
IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 key business and government customers, including 80 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.

Recommended For You


Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

Related Stocks

SymbolLast Price% Chg
iShares MSCI Singapore ETF
Singapore Fund
iShares MSCI Singapore Small-Cap ETF

Related Analysis

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.