By Amanda Lee
SINGAPORE--A key gauge of Singapore's manufacturing activity expanded for the 11th consecutive month in June amid the ongoing artificial intelligence boom.
The purchasing managers index compiled by the Singapore Institute of Purchasing and Materials Management rose to 51.3 in June, up from 51.0 in May. A reading above 50 signals expansion, while a reading below 50 indicates contraction.
The June PMI figure marks the highest level since November 2018, reflecting stronger growth in new orders, new exports, factory output, input purchases and employment, SIPMM said Thursday.
The latest reading indicates that Singapore's manufacturing sector continues to gain from the AI-driven semiconductor supercycle, said Stephen Poh, executive director at SIPMM.
However, Poh said disruptions to global supply chains stemming from Middle East tensions continue to result in slower supplier deliveries and longer lead times.
The PMI for electronics, which accounts for about one-third of Singapore's manufacturing output, rose to 52.2 in June from 51.9 in May, driven by strong expansion in new orders, new exports, factory output, input purchases and employment.
Singapore's trade outlook appears positive, with analysts saying that the city-state will continue to gain from the AI upcycle.
The country's manufacturing growth will likely continue to be supported by the electronics segment in the coming months, said DBS senior economist Chua Han Teng in a recent note.
"The global AI-driven technology cycle, which has supercharged Singapore's stellar electronics performance in the past few quarters, appears to have further room to run," Chua added.
Write to Amanda Lee at amanda.lee@wsj.com