S'pore factory activity ticks up to end two-month contraction

But business momentum may cool once tariff realities kick in

- Ovais Subhani

Manufacturing activity in Singapore staged a modest rebound in June after languishing in contraction territory for two straight months, but uncertainty prevails with a reprieve on US President Donald Trump's global tariffs set to end next week.

Singapore's purchasing managers' index (PMI), a barometer of the manufacturing sector's health, edged up from 49.7 points in May to 50 in June, with readings above that level indicating expansion.

"It is heartening to note that the manufacturing sector has reverted to an expansion going into the second half of the year, albeit trade uncertainties remain in the global economic environment," said Mr Stephen Poh, executive director of the Singapore Institute of Purchasing and Materials Management (SIPMM).

Despite the PMI rise, Mr Poh said: "Anecdotal evidence suggests that local manufacturers are concerned about the rapidly shifting landscape of global trade policy and tariffs, resulting in supply chain fragmentation."

SIPMM is a professional body that gathers and compiles PMI data monthly through surveys of logistics, procurement and supply chain management professionals.