Singapore's purchasing managers' index (PMI) for January came in at a better than expected 50.2, indicating that the manufacturing sector reversed six months of contraction.
The reading, released on Monday, was higher than the reading of 48.6 for December.
Nevertheless, economists said it may be too early to tell if the rebound can be sustained.
The manufacturing activity was boosted by retailers increasing their stocks ahead of the festival season around the Lunar New Year, which started on Feb. 10.
A reading above 50 in the PMI indicates an expansion in the manufacturing sector, whereas a reading below 50 suggests contraction. The index is based on key indicators, including new orders, inventory levels, production, supplier deliveries and employment.
The manufacturing economy of Singapore has been in a continuous contraction over the past six months, largely due to a weak electronics sector amid sluggish external demand.
