--- title: "Manufacturing PMI in March slightly fell to 50.5, initial impact of the Middle East war evident | Lianhe Zaobao" type: "News" locale: "en" url: "https://longbridge.com/en/news/281528918.md" description: "In March, Singapore's Manufacturing Purchasing Managers' Index (PMI) slightly fell to 50.5, indicating a slowdown in the pace of manufacturing expansion, primarily affected by a decrease in new orders, new exports, factory output, and employment growth. The Middle East conflict has led to rising energy and raw material costs, with initial impacts on the manufacturing sector becoming evident. Nevertheless, the PMI for the electronics sector rose slightly to 51.4, marking the tenth consecutive month of growth, reflecting strong global demand for semiconductors and AI hardware" datetime: "2026-04-02T13:02:24.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/281528918.md) - [en](https://longbridge.com/en/news/281528918.md) - [zh-HK](https://longbridge.com/zh-HK/news/281528918.md) --- # Manufacturing PMI in March slightly fell to 50.5, initial impact of the Middle East war evident | Lianhe Zaobao Supported by demand related to artificial intelligence, Singapore's manufacturing sector has expanded for the eighth consecutive month, although the pace has slowed. Economists point out that the Middle East conflict has led to rising energy and raw material costs, with initial impacts on the manufacturing sector becoming apparent, necessitating close attention to downside risks. The latest data released by the Singapore Institute of Purchasing and Materials Management (SIPMM) on Thursday (April 2) shows that the manufacturing Purchasing Managers' Index (PMI) for March was 50.5, a decrease of 0.1 from the previous month. The decline was primarily due to a slowdown in the expansion rates of new orders, new exports, factory output, and employment. Meanwhile, the pace of expansion in the electronics sector has slightly accelerated, with the PMI for March rising by 0.1 to 51.4, marking the tenth consecutive month of growth. This is mainly attributed to the accelerated expansion of new orders, new exports, factory output, input procurement, and employment, with the employment index expanding for the seventh consecutive month. The PMI uses 50 as the dividing line between expansion and contraction; an index above 50 indicates that the manufacturing sector is in an expansion phase, while below 50 indicates contraction. Fu Hao, Executive Director of the Singapore Institute of Purchasing and Materials Management, noted that despite the heightened geopolitical uncertainty brought about by the US-Iran conflict, the latest data still reflects a positive outlook for the overall manufacturing sector. "The electronics sector remains a key driver of expansion, benefiting from strong global demand for semiconductors, AI hardware, and data center components." Cai Hanting, Senior Economist at DBS Bank, also believes that the overall outlook for the manufacturing sector remains positive. However, the slight decline in the PMI warrants close attention, as uncertainties from the Middle East conflict and US tariffs may pose downside risks to the manufacturing sector. ### Input Price Index Reaches Highest Level Since End of 2022 #### Further Reading Facing Economic Headwinds, Manufacturers and Service Providers Optimistic About the Outlook for the First Six Months of This Year \[AI-Related Electronics Sector Performs Well, January PMI Continues to Expand, Operators Optimistic About the Outlook for the First Half !\[\](https://dss0.zbstatic5.com/s3fs-public/styles/article\_small\_crop/public/articles/2026/02/02/raalcon27-possibletoassignbytomorrowphotographerneedstosubmitsomedetailsforsecurityclearance.a683a01f.Attachment.GA35643\_0.jpeg? Cai Hanting added that it is worth noting that in March, the sub-index of the Purchasing Managers' Index (PMI) for input prices rose to 51.0, reaching its highest level since the end of 2022; while the supplier delivery sub-index fell to 49.3, the lowest since July 2020. He said, "Similar to other countries in the region, this data reflects that Singapore manufacturers are beginning to face rising energy and raw material cost pressures, as well as increasing supply chain challenges against the backdrop of the Middle East conflict." ### ASEAN Manufacturing PMI Falls to Six-Month Low Regionally, the latest data released by S&P Global Market Intelligence on Wednesday (1st) shows that several demand indicators for ASEAN manufacturing showed a significant slowdown in March. Following a historical high of 53.8 in February, the PMI for March fell to 51.8, the weakest level in six months. Maryam Baluch, an economist at S&P Global Market Intelligence, commented, "The PMI data for March indicates that the initial impacts of the Middle East war have begun to manifest in ASEAN economies, affecting demand, production, and even confidence. The most noticeable change is the significant increase in price pressures." She pointed out that the manufacturing outlook will be influenced by the intensity and duration of the Middle East war, with considerable uncertainty remaining. The S&P report shows that ASEAN companies still expect strong output growth over the next year, but the level of optimism has fallen to a four-month low and is at historically low levels ### Related Stocks - [588200.CN](https://longbridge.com/en/quote/588200.CN.md) - [PSI.US](https://longbridge.com/en/quote/PSI.US.md) - [562820.CN](https://longbridge.com/en/quote/562820.CN.md) - [159516.CN](https://longbridge.com/en/quote/159516.CN.md) - [ARTY.US](https://longbridge.com/en/quote/ARTY.US.md) - [EWS.US](https://longbridge.com/en/quote/EWS.US.md) - [512480.CN](https://longbridge.com/en/quote/512480.CN.md) - [588780.CN](https://longbridge.com/en/quote/588780.CN.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [AIQ.US](https://longbridge.com/en/quote/AIQ.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [561980.CN](https://longbridge.com/en/quote/561980.CN.md) - [588170.CN](https://longbridge.com/en/quote/588170.CN.md) - [SMH.UK](https://longbridge.com/en/quote/SMH.UK.md) - [159546.CN](https://longbridge.com/en/quote/159546.CN.md) - [159558.CN](https://longbridge.com/en/quote/159558.CN.md) - [XSD.US](https://longbridge.com/en/quote/XSD.US.md) - [159995.CN](https://longbridge.com/en/quote/159995.CN.md) - [512760.CN](https://longbridge.com/en/quote/512760.CN.md) - [159325.CN](https://longbridge.com/en/quote/159325.CN.md) ## Related News & Research - [China's CXMT expects revenue to surge as memory chip demand soars](https://longbridge.com/en/news/286706506.md) - [Where Cerebras' monster debut puts in among tech's biggest IPOs](https://longbridge.com/en/news/286465752.md) - [01:42 ETMicroelectronics Commons Strengthens Commitment to Sivers Semiconductors With Year 2 Funding](https://longbridge.com/en/news/286859393.md) - [NoMIS Power joins ARPA-E DC-GRIDS consortium](https://longbridge.com/en/news/286856430.md) - [KLA approves 10-for-1 stock split and dividend hike](https://longbridge.com/en/news/286340025.md)