Manufacturing growth in Singapore slows as South Korean business sentiment rises

Singapore’s manufacturing output grew 6.8% year-on-year in July 2026, marking the slowest expansion since February. The growth rate moderated from 7.5% in June and fell slightly below market expectations. The deceleration was primarily attributed to a slowdown in the electronics cluster, where growth dropped to 11.2% from 21.1% in June, including a decline in the pace of semiconductor production growth. Additionally, the chemicals and biomedical manufacturing sectors experienced contractions.

Conversely, precision engineering and transport engineering saw accelerated growth. On a seasonally adjusted month-on-month basis, total manufacturing output rose 2.3% in July, rebounding from a decline in June.

In South Korea, business sentiment reached a nearly four-year high in August. The Composite Business Sentiment Index rose to 99.6, the highest level since September 2022. This increase was driven by manufacturing confidence and an improved outlook in the non-manufacturing sector, such as transportation and leisure, during the summer season. The manufacturing index has remained above the 100 threshold for four consecutive months.