-- Singapore's private sector growth surged to its second-highest level since July 2022, driven by a record influx of new business.
The headline seasonally adjusted S&P Global Singapore Purchasing Managers' Index (PMI) rose to 57.9 in April from 56.7 in March, according to a report released Tuesday.
"The Singaporean private sector gained speed in April, with stronger growth in output and a record influx of new business signaled," S&P Global Market Intelligence economist Eleanor Dennison said. "April's demand injection meant that input requirements were greater and this triggered a record increase in buying activity."
New business accelerated due to a pick-up in domestic demand, offsetting the slowdown in export sales.
Ongoing tensions in the Middle East, which disrupted global oil supply, particularly in March, drove up prices and affected international demand for Singapore businesses.
Escalating oil prices also intensified cost pressures for local businesses, prompting most firms to pass the burden onto consumers by raising prices, according to S&P.
Companies reported accumulating backlogs as many trimmed jobs due to cost pressures.
"At a time of severely elevated inflationary pressures, firms therefore looked to cut costs where they could, which materialised as a reduction in employment levels," said Dennison.
Despite a drop in headcounts, business sentiment remained upbeat, with Singaporean companies' growth expectations currently at "their brightest on record," Dennison added.
Meanwhile, Singapore's retail sector remained resilient. Despite fluctuating fuel prices, strong vehicle sales continued to boost retail activity. Data from Statistics Singapore on Tuesday revealed a 4.8% year-over-year increase in retail sales in March, boosted by a 12.9% surge in motor vehicle and parts sales.
Singapore's first-quarter performance points to "resilient" consumer activity, supported by labor market conditions and tourism, Chua Han Teng, senior economist with Singapore-based DBS Bank said in a recent note, as per Singapore-based The Straits Times.