Operating conditions across Singapore's private sector improved in June, with the headline S&P Global Singapore Purchasing Managers' Index (PMI) coming in at 57.4, according to data released on Friday.
The latest reading, which tracks overall economic activity across the private sector, rose from 56.7 in May and remained above the 50 threshold separating growth from contraction.
The stronger headline reading was driven by sustained growth in new business, renewed hiring and stronger purchasing activity, even as output growth slowed to a 10-month low.
The outlook for the coming year also improved as firms built inventories and expanded staffing in anticipation of stronger demand.
Employment returned to growth after two months of job cuts, supported by the hiring of temporary and part-time workers.
Among other components, overall cost inflation accelerated to a survey record, driven by stronger wage growth and higher supplier, freight, energy and fuel costs.