Singapore’s factory activity expanded in July for the 12th consecutive month, driven by artificial intelligence-related demand, even as Middle East tensions triggered a supply chain crisis. The purchasing managers’ index (PMI) inched up to 51.4 points in July, from 51.3 points in June, with a reading above 50 indicating growth. The improvement was driven by stronger growth in new orders, new exports, input purchases and employment, according to the survey compiled by the Singapore Institute of Purchasing and Materials Management, noted on Aug 3. However, July’s factory output index posted a slower expansion of 50.8 points, down from June’s 51.1. The supplier deliveries index stood at 47.8 points in July, down from 48.3 in June, contracting at a faster pace for the seventh consecutive month, reflecting severely prolonged lead times. Stephen Poh, executive director at the institute, said the collapse of the Middle East ceasefire triggered a supply chain crisis, sending input prices soaring. The US and Iran signed an interim ceasefire agreement in June, but it collapsed when countries resumed strikes over control in the Strait of Hormuz. On Aug 3, US President Donald Trump called off further strikes and said talks with Iran are set to resume. The electronics sector, accounting for 40 per cent of the Republic’s manufacturing output, saw its PMI rise by 0.2 point to 52.4 in July.