SINGAPORE, July 3 (Xinhua) -- Singapore's Purchasing Managers' Index (PMI), a key early indicator of manufacturing activity, rose by 0.3 point from May to 50 in June, according to the latest report released by the Singapore Institute of Purchasing and Materials Management (SIPMM) on Wednesday night.

A PMI reading above 50 indicates expansion in the manufacturing sector, while a reading below 50 signals contraction. The latest figure suggests that Singapore's overall factory activity returned to expansion territory in June, following two consecutive months of contraction.

The electronics sector PMI also edged up, rising 0.2 point from the previous month to 50.1 in June, likewise returning to expansion after two straight months of contraction.

"It is heartening to note that the manufacturing sector has reverted to an expansion going into the second half of the year, albeit trade uncertainties remain in the global economic environment," said SIPMM Executive Director Stephen Poh.

However, he also acknowledged that local manufacturers remain concerned about the rapidly shifting landscape of global trade policy and tariffs, which are contributing to supply chain fragmentation. ■