SINGAPORE, July 3 (Xinhua) -- Singapore's seasonally adjusted S&P Global Purchasing Managers' Index (PMI) rose to 57.4 in June from 56.7 in May, pointing to a substantial improvement in private-sector operating conditions.

This photo taken on Aug. 13, 2024 shows the business district at Singapore's Marina Bay.  (File photo: Xinhua)

The latest reading marked a further expansion in business activity, supported by stronger sales and an overall pickup in demand across a range of service sectors, S&P Global said on Friday.

Although output growth eased from the previous month, activity continued to expand at a solid pace and broadly in line with the survey's long-run average.

"The Singaporean private sector economy rounded off the first half of the year in a strong position," said Eleanor Dennison, economist at S&P Global Market Intelligence.

Dennison said firms were positioning themselves for sustained demand growth, citing improved business optimism, increased hiring and efforts to build inventories ahead of expected new business inflows.

She also said the inflation outlook remained mixed. "Should we continue to see elevated demand for inputs, cost inflation is likely to pay the price, on top of the pressure brought on by geopolitical tensions and the subsequent energy price shock," she said.

The more granular data, however, showed purchase price inflation to have retreated for the first time in eight months, and outpaced by that of wages, she added.