Singapore's Manufacturing PMI edged up to 51.4 in July 2026 from 51.3 in June, marking a 12th consecutive month of expansion and the highest reading since November 2018, supported by the ongoing AI-driven semiconductor boom. Growth in new orders, export demand, input purchases and employment strengthened, while factory output expanded at a slower pace (50.8 vs 51.1). Supplier deliveries remained under pressure, with the index falling to 47.8 from 48.3, indicating a seventh straight month of longer lead times amid escalating supply chain disruptions following the collapse of the Middle East ceasefire. Meanwhile, the Electronics PMI, which accounts for more than one-third of manufacturing output, rose to 52.4 from 52.2, also supported by AI-related demand. The future business index remained in expansion territory, underscoring manufacturers' continued confidence in business conditions.