Singapore's manufacturing sector recorded an eighth straight month of expansion last month, though at a slightly slower rate.

The Singapore Purchasing Managers' Index (PMI) - a key measure of factory activity - inched down to 50.5 from 50.7 in January, according to data released yesterday.

A reading above 50 indicates expansion; one below that indicates contraction.

Last month's positive but slower manufacturing growth was attributed to lower expansion rates in new orders, new exports and factory output, and faster supplier deliveries, said the Singapore Institute of Purchasing and Materials Management (SIPMM), which publishes the monthly PMI readings.

The electronics sector grew for the seventh month running, but saw a slight dip to 50.8, against 51 in January. It was weighed down by slower expansion rates in new orders, new exports, factory output and inventory.

Ms Sophia Poh, vice-president for industry engagement and development at SIPMM, said the supply chain operating environment, which first weakened in the second quarter of last year, has since improved.

"Manufacturers are looking to a brighter outlook with minimal disruption to global supply chains as countries worldwide, including Singapore, have started to roll out their vaccination programmes," she said.

The imports, inventory and finished goods stock indexes saw less expansion, while the input prices index recorded more growth.

The order backlog index has recorded expansion for eight consecutive months, although it grew at a slower rate last month, slipping 0.1 point to 50.1.

Meanwhile, the employment index has recorded contractions for 13 consecutive months, although it showed improvement last month when it inched up 0.1 point to 49.9.

It was the third straight month that the employment PMI has risen, noted UOB economist Barnabas Gan, who expects the labour market to pick up further.

The electronics employment index rose for the fourth month running, after it first posted a contraction in February last year. It climbed 0.2 point to 50.6 last month. The electronics supplier deliveries index continued to climb for the second month, while the electronics order backlog index has posted growth for eight straight months.

Mr Gan said the latest PMI data remains supportive of Singapore's overall growth, as seen from the sustained expansion in both the manufacturing and electronic PMI readings since the second half of last year.

He said that Singapore's external environment has continued to improve, with both exports and imports PMI staying above 50 since the third quarter of last year.

"The improvement in Singapore's exports, especially, will likely further lift manufacturing momentum into the year ahead," he said.

The accumulation of order backlog suggests that additional resources may be needed to fulfil outstanding orders, he added.