Singapore’s manufacturing industry, one of Southeast Asia’s largest despite the island nation’s small size, grew for the second month in a row in June after contracting for five straight months.

The city state’s Purchasing Managers Index (PMI) came out with reading of 50.4 -a 0.2 point gain from May. A number above 50 shows that manufacturing activity is increasing, while one below 50 means that it is slowing.

Export orders decreased, but an expansion in new orders, as well as an increase in production output, contributed to a higher PMI reading. Singapore’s electronics sector enjoyed the highest manufacturing growth at 50.3 – an increase of 0.5 points over the month of May.

The Singapore Institute of Purchasing & Materials Management (SIPMM) said that the resurgence in manufacturing activity is being caused by more orders, greater production output, as well as higher inventory.

High value products such as …