THE electronics sector appears to be on the brink of a robust recovery, if the latest Purchasing Managers' Index (PMI) is anything to go by.

The index, an early indicator of upcoming manufacturing demand, showed a surprisingly strong leap in the segment last month, signalling an impending turnaround in the industry.

Overall manufacturing output across all segments is also headed north, with the broader PMI recording higher factory production for the second straight month on the back of more new orders, including export orders.

This could lead to a solid bounce for manufacturing in the second quarter, although full-year growth for the sector is still expected to be negative.

The overall PMI came in at 51.1 last month, slightly below the 51.2 reading in May. A reading above 50 indicates that manufacturing is expanding.

However, the electronics-only PMI gained more ground to post a reading of 55, up from 52.9 in May and the highest level since December 2006.

Economists said the sustained expansions in the PMIs were encouraging and underscored the stabilisation of the key manufacturing sector, which makes up about a quarter of Singapore's economy.